When you’ve been hurt in an accident, the last thing you want to think about is how you’re going to afford medical care. But for many injury victims, the rising cost of healthcare adds another layer of stress to an already difficult situation. From emergency room visits and surgeries to follow-up care and physical therapy, medical bills can quickly pile up, sometimes before your case is even resolved.
In this blog, we’ll explain how rising medical costs impact personal injury cases and how an experienced personal injury attorney can help you navigate the financial challenges of recovery.
The Impact of Rising Medical Costs on Personal Injury Settlements
As the cost of healthcare continues to climb, so does the financial pressure on plaintiffs and defendants in personal injury cases. Higher medical bills often mean higher damages, but they also introduce more complexity when it comes to negotiating a fair settlement. Insurance companies scrutinize medical expenses more closely, and injured individuals may face mounting out-of-pocket costs before their case is even resolved. Understanding the factors behind these rising costs is essential for building a strong, well-supported claim.
Role of Healthcare Spending Growth
Healthcare spending in the United States has been steadily increasing for decades, placing a greater burden on individuals recovering from injury. In 2019 alone, national healthcare expenditures rose by 4.6%, according to the Centers for Medicare & Medicaid Services. This growth directly affects personal injury claims, as plaintiffs are often responsible for paying these ever-increasing costs upfront, even if reimbursement comes later through a settlement. Attorneys and insurers alike must take this trend into account when calculating the true value of a claim.
Influence of Inflation on Medical Costs
Inflation doesn’t just affect groceries and gas—it plays a major role in driving up the price of medical care. The cost of hospital stays, surgical procedures, and prescription drugs has increased significantly in recent years, and those rising figures must be factored into future medical expense projections for personal injury cases. In 2024 alone, hospital expenses grew 5.9%, surpassing the overall inflation rate of 2.9%. This has forced legal teams to reassess the long-term care costs associated with serious injuries.
Medical Technology’s Contribution
While advances in medical technology have improved patient outcomes, they’ve also introduced new challenges in the personal injury space. Cutting-edge diagnostic tools, robotic surgeries, and specialized treatments often come with a hefty price tag. These costs are frequently passed on to patients, further inflating the damages that need to be recovered.
Calculating and Estimating Future Medical Expenses
In serious personal injury cases, one of the most critical components of a fair settlement is an accurate projection of future medical expenses. These aren’t just numbers on paper—they represent the real, ongoing cost of recovery for someone whose life has been altered by injury. From rehabilitation and medication to assistive devices and long-term care, these expenses must be carefully estimated to ensure that victims receive the compensation they’ll need not just today, but for years to come.
Insurers’ Cost Models
Insurance carriers use proprietary cost models to estimate future medical expenses, but these models often rely on general averages rather than the specific needs of the individual. As a result, they may underrepresent the true costs of ongoing care. Many models also exclude inflationary adjustments or assume shorter-than-expected recovery periods, which can severely limit the financial resources available to an injured person in the long term. Overall, they don’t accurately represent rising medical costs in personal injury cases.
Strategies Insurers Use to Minimize Payouts
It’s no secret that insurers are motivated to reduce their financial exposure. One common tactic involves downplaying the likelihood of future treatment needs or disputing the necessity of certain medical interventions. Adjusters may also challenge the credibility of expert opinions or propose alternative treatment plans that don’t align with a patient’s best interests. Without strong legal advocacy and clear medical documentation, plaintiffs may find themselves settling for far less than what their future care will actually cost.
Gathering Evidence
Accurate estimation begins with a strong foundation of documentation. This includes complete medical records, itemized billing statements, and detailed evaluations from treating physicians and specialists. Expert reports—particularly from life care planners and medical economists—are essential in translating a diagnosis into a realistic projection of care needs and costs. At Murphy & Prachthauser, we work closely with these professionals to build claims that reflect both the medical reality and the financial burden ahead.
Understanding Life Care Plans
A life care plan is a comprehensive document that outlines the current and future needs of a person living with a serious injury or disability. These plans are created by certified professionals and provide a detailed roadmap for care, encompassing therapy schedules, home modifications, and assistive technologies. In personal injury litigation, life care plans are crucial evidence to support settlement demands, ensuring that all anticipated costs are accounted for in negotiations or at trial.
Legal Aspects Governing Cost Determination
There are legal guidelines that shape how future medical expenses can be claimed and presented in court. These vary by jurisdiction and may include rules about the admissibility of expert testimony, the need to discount costs to present value, or requirements for proving the medical necessity of certain treatments. Navigating these rules requires a deep understanding of both law and medicine.
Impact of Permanent Disabilities on Costs
When an injury results in a permanent disability, the stakes—and the costs—are significantly higher. Lifelong care needs, loss of income, and diminished quality of life must all be factored into the settlement. This may include in-home caregivers, adaptive equipment, recurring surgeries, or even relocation to accommodate mobility needs. For clients facing these challenges, Murphy & Prachthauser fights to ensure that every foreseeable cost is considered because a settlement should do more than close a case; it should secure a future.
Wisconsin‑Specific Considerations
In personal injury cases, state law plays a critical role in determining what can be recovered and how damages are calculated. Wisconsin has its own set of rules and legal standards that affect how future medical expenses are presented, discounted, and defended in court.
Recovering Future Medical Expenses under Wisconsin Law
Under Wisconsin law, plaintiffs must prove that future medical expenses are likely or probably. This doesn’t require absolute certainty, but there must be credible medical testimony to support the need for future treatment. Courts and juries look for clear documentation and expert opinions to validate that these projected expenses are expected outcomes, not just possibilities.
Present Value Requirements
Wisconsin courts require that future medical costs be adjusted to reflect their present value, which ensures a fair and accurate calculation of long-term expenses. Jury instructions 1796 and 1797 from the Wisconsin Civil Jury Instructions address both present value and the impact of inflation. However, in recent years, medical costs have been rising faster than general inflation, often by 2% to 3% or more.
When future medical costs are significant, Murphy & Prachthauser brings in economic experts to explain why using only general inflation rates would understate the actual burden our clients face. It’s this level of detail and preparation that allows us to make a strong case for full compensation.
Practical Tips for Wisconsin Claims
Working with local experts is essential when projecting future medical expenses in Wisconsin. Medical professionals, economists, and life care planners familiar with state guidelines can provide credible, defensible estimates. It’s also important to understand the collateral source rule, which protects injury victims from having their damages reduced just because they have insurance.
In fact, we’ve taken this issue all the way to the Wisconsin Supreme Court. In Orlowski v. State Farm, our attorneys fought to ensure that plaintiffs aren’t penalized for having good insurance—and we won, 7–0. That kind of unanimous decision is rare.
The heart of the issue is this: Most people earn their health insurance as part of their compensation from their employer. If your insurance pays a discounted medical bill, it’s because you already paid into that benefit, not because the negligent party deserves a discount. The responsible party doesn’t get to benefit from your planning, your employment, or your insurance. That’s the principle behind the collateral source rule, and we’ll continue to defend it at every level of the legal system.
Maximizing Compensation with Murphy & Prachthauser
At Murphy & Prachthauser, our personal injury lawyers know that behind every personal injury case is a person whose life has been disrupted. Rising medical costs make fair compensation even more critical, which is why we take a meticulous, evidence-based approach to building each case. Our goal is simple: to ensure that every client receives the full amount they’re entitled to, not just for today’s bills, but for the care they’ll need in the years to come.
Attorneys’ Role in Navigating Costs
Our process for calculating and supporting medical damages is thorough and deliberate. We begin by gathering all relevant documentation, like past medical bills, treatment records, and expert evaluations, to establish a clear picture of the injury’s immediate impact. From there, we work with doctors and certified life care planners to project future needs, including therapy, medications, home modifications, and assistive equipment. We don’t stop at today’s prices—we apply medical-specific inflation rates to account for the rising cost of care, ensuring those projections remain realistic over time.
To support these projections, we use an interdisciplinary strategy. Life care planners outline long-term treatment plans tailored to the client’s condition, economists model inflation and discount rates to present a legally sound valuation of future expenses, and treating physicians and specialists help validate every projected cost, adding medical authority to our claims. It’s a team effort focused on one outcome: fair and full compensation.
Aggressive Negotiation and Litigation Strategies
We approach negotiations with insurers strategically and aggressively. Our demand packages are built on hard data and comprehensive documentation, leaving no room for ambiguity or omission. When insurance carriers present lowball offers based on generic cost models, we counter with real-world billing data and expert testimony that tells the full story of our client’s needs.
And when a fair settlement can’t be reached, we’re fully prepared to go to trial. Our attorneys have successfully litigated complex injury cases at every level, including the Wisconsin Supreme Court. We don’t leave anything on the table, because we know how much is at stake for the people we serve.
Conclusion: Navigating the Complex Landscape of Rising Medical Costs
Rising medical costs have made personal injury claims more complex, but also more important. At Murphy & Prachthauser, we understand the financial realities our clients face, and we bring the legal, medical, and economic expertise needed to build a case that stands up to scrutiny. Your health, your recovery, and your future deserve nothing less.If you’re facing mounting medical bills after an injury, don’t wait. Contact Murphy & Prachthauser today for a free consultation. Let’s talk about your case, your options, and how we can help you recover the compensation you need to move forward.