Professional Liability Insurance Costs (7/1/13-6/30/14)

It is always shocking for me/AANHR to FOI the “Professional Liability Insurance Cost Reports,” which AR nursing homes are reimbursed for each year.  Nursing home owners’ premiums go up because they continue to give bad care.  Being cited for poor care also means they are violating state and federal laws.  Tax payers’ dollars (state & federal) pay for the reimbursement to protect the nursing home administration from the results of its poor care, to the tune of millions of dollars each year.  Please take a few minutes to read the

Most of us carry liability insurance on our vehicles and homes. This covers us if a visitor falls at our home and sustains injury or if we are involved in an auto accident. Our insurance coverage pays medical bills for visitors’ injuries or to repair our car, sometimes the other car(s) involved, and any personal injury caused inadvertently by us, the driver.  As responsible citizens we provide for the protection of our persons and our property.  The difference between us and nursing homes is that we personally pay for our insurance premiums for our protection.  If we are irresponsible enough to receive a DUI or other infraction naturally our insurance premiums rise.

In the case of nursing home owners, premiums are also personally paid by us citizens through taxation that supports Medicaid.  The cost for most (not all) nursing home residents’ care is paid under Medicaid. Nursing home liability insurance might involve various categories of coverage such as injury accidents that visitors incur, transport van accidents, along with abuse and neglect to residents.

We have a cycle going within the nursing home industry.  Medicaid reimburses for care (including liability insurance premiums); the nursing home doesn’t always give good care; abuse and neglect occur; so liability insurance premiums rise thus requiring more tax dollars spent.  If resident care improved, premiums could be reduced, resulting in tax savings in the federal/state budget.  In a time of record deficits/national debt would that not be a welcome set of circumstances.

AANHR believes that AR nursing homes should be required to carry liability insurance.  We do not believe that taxpayers should be paying to protect nursing home owners when abuse, neglect, and death of our most frail and vulnerable citizens occurs.

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