Medical Expenses Recovery Calculator
Estimate the total recoverable medical expenses in a personal injury or insurance claim, including past medical bills, future medical costs, and applicable reductions such as insurance write-offs, contributory negligence, and policy limits.
Formulas Used
1. Present Value of Future Medical Costs:
PV = FV ÷ (1 + r)n
where FV = future cost, r = annual discount rate, n = years until incurred.
2. Gross Recoverable Medical Expenses:
Gross = Past Medical Bills (Billed) + PV of Future Costs
3. After Collateral Source Reduction:
Net = Gross − Collateral Source Payments
4. Comparative / Contributory Negligence Reduction:
Adjusted = Net × (1 − Negligence%)
5. Policy Limit Cap:
Final Recovery = min(Adjusted, Policy Limit) [if limit > 0]
Assumptions & References
- Past medical expenses are based on the billed amount (not the reduced paid amount), consistent with the collateral source rule applied in most U.S. jurisdictions (Howell v. Hamilton Meats, Cal. 2011; Restatement (Second) of Torts § 920A).
- Future medical costs are discounted to present value using a constant annual discount rate, consistent with Jones & Laughlin Steel Corp. v. Pfeifer, 462 U.S. 523 (1983).
- Comparative negligence reduction follows the pure comparative fault model (e.g., California Civil Code § 1431.2). In contributory negligence states, any fault may bar recovery.
- The collateral source deduction field captures amounts already compensated by other insurance, government benefits, or third parties, where the jurisdiction requires such a deduction.
- Policy limits reflect the maximum indemnity payable under the applicable insurance policy.
- This calculator provides an estimate only and does not constitute legal or financial advice. Actual recoverable amounts depend on jurisdiction, court findings, and specific policy terms.
- Reference: American Jurisprudence 2d, Damages §§ 100–130; Restatement (Third) of Torts: Liability for Physical and Emotional Harm § 35.