U.S. long-term care provider liability costs amounted to about 3% of what Medicaid paid for a nursing home bed in 2015, or $2,350 per occupied long-term care bed.
In Florida, the state with the second highest liability cost ratio, 2015 liability claims per bed averaged 8% of the daily Medicaid reimbursement rate. In Kentucky, the state with the highest cost ratio, claims amounted to 10.6% of the Medicaid daily rate.
Analysts in the Columbia, Maryland-based office of Aon PLC have reported those findings in their latest U.S. long-term care provider claim cost report.
The actuaries found that liability losses amounted to an average of $218,000 per claim, or $2,350 per long-term care bed, with a claim frequency of 1.08 claims per 100 occupied beds.
The frequency of claims is increasing about 4% per year, and the severity of the claims reported is increasing about 2% per year.