Liability costs for long term care providers are expected to increase by 5 percent and claims frequency is also expected to rise, according to analysis released by the American Health Care Association (AHCA) and Aon Global Risk Consulting.
The analysis provides estimates of loss rates, or the cost of liability to the beds that care providers operate.
The projected national 2015 loss rate, which is a combination of claim severity and frequency, is $2,030 per occupied bed.
“The need for long term and post-acute care is growing, and increasing liability costs impede our ability to serve those we care for and their families,” said Mark Parkinson, AHCA president and CEO.
“This report underscores the importance of delivering solutions so we can continue to provide the highest quality care and improve lives.”
Kentucky’s state constitution prohibits limits on tort recoveries and there are no statutes concerning qualification of expert witnesses, certificates of merit, pre-trial alternative dispute resolution or limits on attorney’s fees.
Texas, on the other hand, experienced dramatic loss rate reductions following constitutionally enacted tort reform in 2003. These reductions in loss rates have been sustained in the years following the legislation.
Christian Coleianne, associate director and actuary from Aon Global Risk Consulting, commented: “Once again, we continue to see claims frequency rates grow nationally. Kentucky remains the highest cost state in our annual study, with a projected loss rate of $9,220 per occupied bed.”
Seventeen states participated in this annual report, which also highlights an aggregate country-wide projection.
