When Life Expectancy Equals Dollars
***NEWSLETTER***
When calculating future damages, life expectancy matters. Whether the claim involves future medical specials, loss of earning capacity, loss of household services, or general damages, the projected length of the plaintiff’s life is often central to valuation.
That means current population data can directly affect recovery.
In California, the life expectancy tables found in CACI are often treated as the standard reference point. However, those tables rely on data published in the 2019 National Vital Statistics Reports, which in turn relied on mortality data from 2016.
It may be time to move beyond older data.
CMS has announced that, beginning September 20, 2025, it will use the CDC’s 2023 life table for Workers Compensation Medicare Set Aside life expectancy calculations. The updated table comes from the National Vital Statistics Reports and reflects more current mortality data than the tables commonly used in California civil practice.
That matters for plaintiff attorneys.
Life expectancy is not just a demographic statistic. It is a multiplier. It affects the projected duration of medical care, attendant care, medications, equipment, supportive services, lost earning capacity, and noneconomic loss. When the applicable life expectancy increases, the value of future damages may increase as well.
For example, under the older 2016 data, a sixty-one-year-old male had a life expectancy of 22.5 years. Under the 2023 tables, that figure rises to 23.4 years. That additional period may appear modest in isolation, but when applied to annual future care needs, it can materially change the settlement analysis.
This is particularly important in cases involving life care plans and Medicare Set Aside issues.
We have already begun using the updated mortality tables in our evaluation of Medicare Set Aside questions. As the bar continues preparing for anticipated rules involving Liability Medicare Set Asides, counsel should remain focused on the standard articulated in CMS guidance: act reasonably to protect Medicare’s interests.
Using the same mortality data adopted by CMS helps reduce disputes over assumptions. It also allows the parties to focus on the issues that should drive the settlement discussion: relatedness, reasonableness, allocation, and the actual cost of future care.
For plaintiff attorneys, the takeaway is straightforward.
When life expectancy increases, future damages may increase. When the data is more current, the valuation becomes stronger. And when the methodology aligns with CMS, counsel is better positioned to defend the analysis.
Life expectancy equals dollars.
Use the current data. Protect the recovery. Build the record.