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Aon: Liability costs continue to rise for long-term care facilities

Liability costs for long term care providers are expected to increase by five% and claims frequency is also expected to rise, according to a new report.

By staff Writer | Updated on November 13, 2014

Washington, D.C. – Liability costs for long term care providers are expected to increase by five percent and claims frequency is also expected to rise, according to an analysis released today by the American Health Care Association (AHCA) and Aon Global Risk Consulting, the risk consulting business of  Aon plc (NYSE:AON).

The 2014 Long Term Care General Liability and Professional Liability Actuarial 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. This means that an operator with 100 beds can expect $203,000 in liability expenses in 2015.

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