The landscape of personal injury law is continually evolving, influenced by various economic and societal factors. One of the most significant influences in recent years has been the escalating costs of medical treatments. These rising expenses are profoundly impacting personal injury settlements, affecting both the compensation awarded to plaintiffs and the strategies employed by attorneys.
The Escalation of Medical Costs
Medical treatment costs in the United States have been increasing rapidly. According to data from the Centers for Medicare & Medicaid Services (CMS), healthcare spending grew 4.6% in 2019, reaching $3.8 trillion, which amounts to $11,582 per person. Various factors, including the high cost of medical technology, pharmaceuticals, and healthcare services drive this trend.
Influence on Personal Injury Settlements
1. Higher Settlement Amounts
One of the most direct impacts of rising medical costs is the increase in settlement amounts. When plaintiffs incur higher medical bills due to their injuries, the compensation they seek must also rise to cover these expenses. This includes not only immediate medical costs but also future medical care that may be required, such as surgeries, rehabilitation, and long-term care.
2. Increased Insurance Premiums
As settlements increase, insurance companies face higher payouts, leading to a rise in insurance premiums. Personal injury protection (PIP) and medical payment coverage (MedPay) policies, which cover medical expenses after an accident, become more expensive for consumers. This, in turn, can influence the strategies of both plaintiffs and defendants, as higher premiums affect the affordability and accessibility of insurance.
3. Strategic Litigation Adjustments
Attorneys must adapt their strategies to account for higher medical costs. For plaintiffs’ attorneys, this means gathering comprehensive medical documentation to substantiate the increased expenses. Detailed medical records, expert testimonies, and life care plans are essential to justify the higher settlement amounts sought
4. Pressure on Defendants and Insurers
Defendants and their insurers are under increased pressure due to rising medical costs. They may be more inclined to settle claims out of court to avoid the risk of even higher payouts if the case goes to trial. This can lead to quicker settlements but also requires careful negotiation to ensure that the settlement amount adequately covers the plaintiff’s medical expenses and other damages.
Challenges for Plaintiffs
1. Burden of Proof
With higher settlement amounts at stake, plaintiffs face a greater burden of proof. They must provide detailed evidence of their medical expenses and demonstrate the necessity of future medical care. This often involves obtaining expert opinions and comprehensive medical assessments, which can be both time-consuming and costly.
2. Financial Strain
The delay between incurring medical expenses and receiving a settlement can place a significant financial strain on plaintiffs. While waiting for a settlement, plaintiffs may struggle to pay for ongoing medical treatment, leading to potential health complications and financial distress. This underscores the importance of efficient legal processes and the availability of interim financial solutions, such as pre-settlement funding.
Conclusion
The rising costs of medical treatments are significantly influencing personal injury settlements, leading to higher compensation amounts, increased insurance premiums, and strategic adjustments in litigation. Plaintiffs and their attorneys must navigate these challenges by providing robust evidence and negotiating effectively to secure fair settlements.
As medical costs continue to rise, it is crucial for all parties involved in personal injury cases to stay informed about these trends and adapt their approaches accordingly. By doing so, they can better ensure that injured individuals receive the compensation they need to cover their medical expenses and support their recovery.
For further insights into managing personal injury claims amidst rising medical costs, consulting with an experienced personal injury attorney can provide valuable guidance and support.
Contact a Local Lawyer
If you’ve been injured, don’t hesitate to seek legal representation to hold the at-fault parties accountable and pursue the compensation you deserve. By taking action and asserting your rights, you can secure the financial resources needed to recover from your injuries and move forward with your life.
Remember, you’re not alone in this process. Our experienced legal team is here to guide you through every step of the journey, advocating fiercely on your behalf and fighting for the justice and compensation you deserve.
Get in touch with us so we can evaluate your case for free. Call PMR Law at 832-844-6428 and a member of our team will get in touch with you immediately.
Contact a Local Lawyer
PMR Law is considered one of the Best Law Firms in America, by Rue Ratings. Several of our attorneys have been given the honor of being named Super Lawyers by Thomson Reuters. The American Institute of Personal Injury Attorneys has named our attorneys 10 Best in Client Satisfaction. Speaking of personal injury, Attorney and Practice Magazine awarded our attorneys with Top 10 Personal Injury Attorney distinctions. The National Trial Lawyers have named three of our attorneys as Top 100 attorneys. The Academy of Attorneys has named two of our attorneys as Top 40 Under 40. Our attorneys have been recognized as Best Attorneys of America, by Rue Ratings. PMR Law is a proud member of the Multi-Million Dollar Advocate Forum. Houstonia Magazine has named two of our attorneys as Top Lawyers in Personal Injury. Forbes Advisor has recognized PMR Law attorneys in their Best Truck Accident Lawyers of Houston. Texas Lawyer magazine has named PMR Law as the #1 Personal Injury Law Firm in Houston.