A Cost Projection may be done during the initial stage of a catastrophic claim to assist with setting reserves. It is recommended that the projection be updated periodically or following a significant change in status, to allow for adjustments as indicated.

It may also be indicated prior to settlement when an injured person is not a Medicare beneficiary or it is know that they will not qualify for Medicare benefits. It can also be utilized for the claimant who may require shorter-term treatment or multiple medications.