Liability costs climb for long-term care, analysis finds

Average national liability costs to the long-term care sector have stabilized for the first time in nine years, according to a report released Monday by the Aon Corporation.

Average liability costs are $1,460 per bed, according to the report. That compares with a high of $2,030 in 1998. Also, the average cost of a claim was $138,000 in 2007, versus $261,000 10 years ago. The numbers were even lower in 13 states that had passed tort reform laws: $1,270 per bed and $104,000 per claim.

This year’s report finds the actual number of claims evening out, as well. It has steadied in the last year to around 10.6 claims per 1,000 occupied beds. In 1997, Aon reported 6.7 claims per 1,000 occupied beds. That number nearly doubled by 2005.

States that do not have tort reform laws on the books saw their average per-bed liability costs double over the last 10 years, from $630 to $1,260. The report was conducted in cooperation with the American Health Care Association.

For more information, visit either www.ahcancal.org or www.aon.com.