Nursing Home Aides Frustrated Over ‘Essential’ Insurance Costs

Many nursing home operators said their property and personal insurance premiums go up between June and July — sometimes dramatically.

In fact, professional fees rose “significantly,” according to 30% of nursing care industry respondents to a recent National Investment Center for Seniors Housing & Care (NIC) Executive Insights survey.

Lack of competition in the insurance market, concerns about Covid and lawsuits were cited as some of the main reasons. The increase in natural disasters, and the global increase in the frequency and severity of claims are linked to a jump in insurance, according to the NIC’s summary of its findings.

John Atkinson, managing director and leader of the National Senior Living and LTC Industry Group for Marsh, said carriers are also taking a hard look at how nursing homes deal with the workforce crisis.

The study found 50% of all post-hospital care sectors, including nursing homes, saw a slight increase in labor insurance; an additional 30% of nursing home respondents said this type of insurance had grown “a lot.”

The results of property insurance were similar, according to the NIC survey, with 50% of respondents saying that their property insurance had increased slightly, while one-third saw a significant increase in their property insurance.

Atkinson said there was already a strengthening of the financial insurance market between 2018 and 2019.

When Covid hit, there was a lot of anxiety about the Covid-related tsunami that was reported to staff – this anxiety was particularly acute in nursing homes, he said.

Other states such as California, New York and Florida were hotbeds of litigation, Atkinson said, which led to increased insurance premiums.

Although there is an increase in Covid-related claims that are driving up insurance rates, it has not yet reached the level people expected, he added.

As for future insurance rates, Atkinson expects more energy and more competition to bring rates back down.

Respondents to the NIC survey were owners and managers of 50 skilled nursing and nursing staff, of which 67% owned or operated one to 10 homes. About 20% employed 11 to 25 and 13% owned 26 or more. More than half of the respondents were for-profit, 38% were not-for-profit and 10% worked in both.

A major NIC study was launched in March 2020 to provide real-time information on the impact of epidemics on post-acute care units, and look at the recovery process.

Since then, NIC researchers have been able to confirm that the speed of movement is closely related to the disease of Covid – recently, the drop that the increase in movement has occurred when the place was dealing with the highly contagious BA.4. BA.5 subvariants between the end of May and July.

Especially in nursing homes, moving rates last month dropped by 29%. This is the second consecutive jump in which a handful of aged care organizations have reported record highs.

Acuity-in acuity has also increased for nursing homes, according to 64% of respondents nursing care, an increase of two percentage points from the main survey of NIC between April and May.

Surprisingly, staff shortages were not a factor in the rapid decline in travel, according to the NIC study. In the previous survey, which was conducted in June, 16% of the respondents said that the decrease in work is causing a decrease in the management.

In fact, 76% of respondents to a recent survey said the decline was due to a decrease in lead conversion and sales. About 18% said the slow move was linked to restrictions imposed by the organization, and 6% said the concerns of residents or family members caused the slow move.