Georgia Serious Injury Cases: Frequently Asked Question Number 2

This continues in our series of providing our readers with answers to frequently asked questions in the context of a serious injury case. This blog will address FAQ number 2:
2. Who will bear responsibility for my future medical expenses if I settle my serious injury case today?
Answer: Anytime a serious injury case is settled, there has to be an evaluation of future medical expenses. Has the injured individual recovered completely from their injuries? Are future medical expenses likely? If future medical expenses are likely they need to be considered when the issue of settlement is addressed. In short, a settlement is a once and for all payment meaning that no more monies will be paid in the future. Thus, if future medical expenses are anticipated, they have to be provided for today and then the funds set aside for those future anticipated expenses.
The problem, of course, in any serious injury case is whether available insurance proceeds are sufficient to compensate for the total value of the claim. If someone is seriously injured and the at fault driver has little or no available insurance coverage, then the question is whether the at fault driver is personally wealthy enough to sufficiently compensate the injured individual. Typically, if someone has minimum or low insurance limits it is usually because they cannot afford much greater coverage. Therefore, in a serious injury case involving minimum or low insurance limits, there is very little money available to compensate the injured individual for their present expenses, much less future expenses. In those cases, however, when a commercial entity is involved and a commercial insurance policy is available, such as a tractor-trailer case, then in those cases, it is necessary that experienced counsel consider not only current medical expenses but also the future medical needs of the client.
In the appropriate case, a structured settlement in available as a tool to provide long term medical expense coverage for the injured individual. If it is anticipated, for example, that the injured client may need future surgeries over the next 5 to 10 years, an annuity can be purchased today that will provide such coverage in the future. The annuity costs will have to be paid out of current settlement proceeds but that can be done in a tax free manner which will then set aside the funds for the long term medical care.
The answer to the question, of course, depends upon whether the at fault individual has sufficient means to address the client’s future medical needs. If there are sufficient resources available, either by way of insurance or otherwise, then experienced counsel can make allowances for the future medical costs to be incurred and can set aside funds to address those needs. Such provisions can be made through the purchase of tax free annuities. All of this dependent on the central question being whether there are sufficient available funds to address the serious needs of the client past, present or future.