Negligence Lawsuits Against Florida Nursing Homes ‘Increasing’ Insurance Premiums Across the Country
High costs for negligence claims against nursing homes in Florida are causing liability insurance premiums to rise for homes across the country, the Washington Times reports. Although Florida has only 10% of the nation's nursing home beds, the state accounts for 21% of total nursing home negligence claims, with half of those claims for more than $500,000. Nationwide, just 21% of claims are for amounts that high, according to Aon Risk Consultants Inc., which conducted a study on the increasing premiums. But because insurance companies that underwrite nursing homes usually work with facilities nationwide and distribute their costs evenly, if costs in one state increase, premiums are impacted across the board, the Times reports. Theresa Bourdon, a co-author of the Aon study, said, "There is an overall increase. If you look at other states, the trends are definitely higher than is typical for patient care liability ... it's a concern for all states."
Reviewing Market Conditions
The Times reports that due to the increasing costs, some insurance companies are "refusing" to cover nursing homes or will only offer coverage to not-for-profit homes, even in states where few lawsuits have been filed. Insurance officials in those states, such as Virginia and Maryland, are working with nursing homes to "get a better idea of market conditions." In Virginia, the Virginia Health Care Association is "getting creative" by considering a "self-insured pool" to allow it to set its own rates (Stefanova, Washington Times, 9/4).
