A four percent annual increase in average claim sizes will drive growth in overall liability costs for the long term care profession in the coming year, according to Aon's 2011 Long Term Care General Liability and Professional Liability Actuarial Analysis. The study, conducted in partnership with the American Health Care Association, measures liability costs -- known as loss rates – as well as the frequency and severity of claims and the loss rate as a percent of the Medicaid per diem reimbursement rate. These statistics are presented on a national level as well as for eleven profiled states.
As the world's leading provider of risk management services, insurance and reinsurance brokerage, and human resources solutions and outsourcing, Aon is proud to provide our clients with superior service and the most informative risk insights and data available. For this Long Term Care GL/PL report, Aon's Actuarial and Analytics Practice aggregated approximately 17,000 individual nonzero claims from long term care facilities, representing approximately 260,000 long term care beds.