Assessing Future Medical Costs in Catastrophic Injuries

Dr. Dubravka Tosic explores the complex process of calculating economic damages in personal injury cases—particularly long-term costs of life care plans. She outlines two critical phases: identifying the lifetime needs of the injured individual and calculating the present value of those needs using sound economic and financial principles.

Dr. Tosic argues that current legal standards for discount rates may significantly misrepresent the true financial picture. While economists often are required to use conservative, risk-free rates, actual investment strategies—especially for high earners or financially savvy plaintiffs—can yield much higher returns. This disconnect can lead to overcompensation, challenging the principle of making plaintiffs “whole” without creating a financial windfall.

Dr. Tosic calls for a reevaluation of statutes and case law to better align discount rate assumptions with modern financial realities and individual circumstances.

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