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Potential bias in the estimation of future medical care costs: Empirical and conceptual issues
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The advisory commission to study the consumer price index appointed by the Senate Committee on Finance recently concluded that inflation rates based on the consumer price index (CPI) contain significant upward bias. The commission also noted that this upward bias was particularly large in the medical care category (Committee on Finance 1996, 39-40). These results imply that estimates of the present value of future medical costs in personal injury cases will also be biased when the growth and discount rates used in arriving at these estimates are based upon CPI data.
The purpose of this paper ...
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 "The Capital Times (Madison, WI)")
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