"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.