To project future medical needs and costs, the life-care planner would take into consideration the age and general health of the individual, the life expectancy, and how the normal aging process affects this disability.
In very serious and catastrophic claims, we will use the life-care planning process as soon as practical.
Because the life-care plan projects future health needs, it is also identifies health risks that could have an impact on the patient's future needs.
Her life-care plan included treatment of her underlying osteoporosis, and also stressed the importance of weight-bearing exercises that she could do at home.
In addition, the life-care plan estimates the individual will require a hip replacement every eight years.
A life-care plan can also come into the spotlight in the ease of litigation.
In addition, life-care plans are used in eases of third-party responsibility, or subrogation, for medical claims.
Life-care plans are also needed to meet Medicare set-aside requirements, which stipulate that money earmarked for future medical treatment be used for that purpose.
Finally, a life-care plan also helps insurance companies to mitigate their risk and determine their claim exposure with regard to reinsurance requirements.
The bottom line with a life-care plan is that everyone has a much better picture of what to expect the projected long-term medical costs to be with regard to medical management of a serious and catastrophic injury or illness," McGraw adds.