The combined total for my past and future medical expenses is around $100k, but the first two settlement offers I received were both below that amount. Why would the offer be less than my medical costs if policy limits aren’t the problem?
A lot of factors go into this…
Did you see a provider that charged way above the usual rate? For instance, if most MRIs are around $10k in your area but yours was billed at $25k, that can affect the offer.
Also, is this a billed vs. paid state? Meaning, if you were billed $10k but only paid $100 out of pocket, that can impact things.
Future medicals also aren’t always fully included. I’ve seen attorneys submit plans for treatments over 30 years, including injections twice a year and continuous chiropractic care. It’s often more than what the insurance will actually agree to.
Are the medical costs actually related to the accident, and are they reasonable? For example, if there was a minor fender-bender and then someone claims a need for surgery, the offer will probably be less than past and future costs because they might not see it as fully justified.
Future medicals aren’t typically included at the full cost. Insurers don’t always consider that every future treatment will happen as listed.
There are often reductions allowed, especially if part of the treatment isn’t directly related, or if there’s a legal offset allowed. It could be any mix of these reasons that’s lowering the offer.