In medical malpractice cases filed in Pennsylvania, there is often a claim for future life care plan costs. The Pennsylvania 2002 Medical Care Availability and Reduction of Error Act specifies that future damages for medical and other related expenses shall be paid as periodic payments after payment of the proportionate share of counsel fees and costs based upon the present value of the future damages awarded. The trier of fact may vary the amount of periodic payments for future damages from year to year for the expected life of the claimant to account for different annual expenditure requirements, including the immediate needs of the claimant. The trier of fact shall also provide for purchase and replacement of medically necessary equipment in the years that expenditures will be required as may be necessary. Finally, the trier of fact may incorporate into any future medical expense award adjustments to account for reasonably anticipated inflation and medical care improvements as presented by competent evidence.

A life care plan expert will often project the annual life care plan costs, and an economist will adjust those cost projections for anticipated future inflation on an annual basis. The expertise of the economist regarding the correct inflation rate to use and the calculations of future annual costs thereof is necessary to provide an accurate and competent annual award of life care plan costs to the claimant. The economist should also provide competent evidence of an appropriate discount rate used to determine the present value of the future damages awarded so that the proportionate share of counsel fees and costs can be ascertained.

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