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The Pitfalls of Using CPI Indexes to Project Medical Costs in Lost Healthcare Benefits and Medical Life Care Plan




 The Pitfalls of Using CPI Indexes to Project Medical Costs in Lost Healthcare Benefits and Medical Life Care Plan
CPE Credit

Program Type: Recorded Webinar (Audio, PPT Presentation)
Program Level: Advanced
Prerequisites: Good knowledge of topic and experience in the field.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: One (1) Hour
Fields of Study: Accounting
Item Number: 15PFF0505
Shipping Weight: 0lbs. 0oz.
Price: $80.00
Program Description

Consulting accountants are often engaged as experts in personal injury litigation where they are required to estimate the future medical costs of disabled individuals within their lost earnings and benefits reports and/or life care plan valuations. In doing so, these experts are likely to rely on medical historical cost growth calculations included in the Consumer Price Index (CPI) by the Bureau of Labor Statistics (BLS).

Assuming that consulting accountants are interested in determining a growth rate that represents the private sector market rate of growth in medical costs, we find that CPI medical cost growth estimates are not a reliable source for this information. Our results show that private sector medical costs have historically increased by more than reported in the BLS data and we propose alternative sources of historical medical cost growth information.

Learning Objectives

After completing this webinar, attendees will be able to:

- Utilize alternatives to the CPI to more accurately calculate projected medical life care costs in litigation cases

Who Should Attend

Forensic accountants, CPAs, and attorneys

Presenter(s)

John C. Gardner, PhD
Dr. John C. Gardner is the KPMG Professor of Accounting in the Department of Accounting at the University of New Orleans. He earned his undergraduate degree from the State University of New York at Albany, and MBA and Ph.D. degrees from Michigan State University. During his 35 years as a professor, Dr. Gardner was a college of business Dean for 14 years, most recently at the University of New Orleans. He has taught in a number of countries including China, Russia, Lebanon, Hungary, Romania, Austria, Jamaica and Ecuador.

Dr. Gardner has published in leading accounting, finance and management science journals and is a consulting economist who testifies as an expert witness in federal and state courts. Dr. Gardner served four years active and two years reserve duty in the United States Navy diesel submarine service during the Viet Nam War.