Ark. Has Highest Long-term Care Liability

CHICAGO, Aug. 6 (UPI) — Arkansas, Tennessee and West Virginia have exceptionally high expenses for long-term care, a U.S. consulting firm says.

The Aon Risk Solutions’ Long-Term Care General Liability and Professional Liability Actuarial Analysis, conducted with the American Health Care Association, measures the frequency and severity of claims, tracks the loss cost as a percent of the Medicaid per diem reimbursement rate and calculates the overall loss cost per occupied long-term care bed.

Nationwide, the average annual loss cost per bed has decreased from $1,710 in 2001 to $1,270 in 2009, the analysis says.

Arkansas has the highest loss cost per occupied long-term care bed. The estimated loss cost per bed in 2009 was $3,990, down from a peak of $6,800 in 2001.

Loss cost is the actual or expected cost to an insurer of indemnity payments. Loss costs do not include overhead costs or profits. Historical loss costs reflect only the costs and allocated loss adjustment expenses associated with past claims.

Since 2001, the loss cost per occupied long-term care bed in West Virginia increased from $1,380 to $3,770 in 2009. Tennessee had the third-highest loss cost per occupied long-term care bed at $3,070.

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