Georgia senior living advocates are calling Georgia Gov. Brian Kemp’s intention to pursue comprehensive litigation reform as his top legislative priority for the year a “crucial step” toward supporting the sustainability of the state’s senior living providers.
“Excessive litigation and the looming threat of runaway damage awards against senior living providers have driven insurance premiums to uncontrollable heights for years,” Georgia Senior Living Association President and CEO Catie Ramp said in a news release. “The escalating cost of providing services to Georgia’s seniors is now at a critical point, jeopardizing the accessibility and affordability of choice-driven care for our most vulnerable population.”
Acknowledging that many industries struggle with high insurance premiums and costs associated with legal actions, Kemp argued during his state of the state address last week that those issues challenge the healthcare workforce and the ability of providers to operate.
Last year, House Bill 1114 was passed, allowing the state insurance commissioner to gather data on the state’s insurance industry, identify reforms to stabilize insurance costs and try to prevent more insurance carriers from leaving the state altogether. Senior living providers participated in roundtables sharing their perspectives on insurance costs and the legal environment.
“Small business owners reported insurance premiums up anywhere from 30% to over 100% over the last few years, costing them hundreds of thousands or millions more just to get basic coverage,” the Republican governor said in his address. “For too many of them, that meant holding back on hiring more employees, waiting to grow their business, or making difficult decisions about whether or not they could even keep the lights on.”
LeadingAge California President and CEO Ginny Helms told McKnight’s Senior Living that Kemp’s emphasis on limiting verdicts is “vital for managing the current environment of excessive verdicts, which leads to sizable insurance increases.”
“Successful tort reform will help keep long-term care more affordable for older adults,” Helms said. “It will also help keep medical directors in our field who currently talk about leaving due to the high cost of insurance and risk of lawsuits. Tort reform will bring the long-term care industry back in balance.”
Helms said that LeadingAge Georgia members raise funds for programs to support residents, including chaplaincy programs that fund services for those in affordable senior housing who need help to age in place, and for residents in all settings who run out of funds.
“This is where funds need to go, not on excessive payouts,” Helms said.
The Georgia Health Care Association / Georgia Center for Assisted Living told McKnight’s Senior Living that “inflammatory and sensationalistic tactics” by attorneys have created an environment that left clinicians and practitioners feeling like their “sincere professional and clinical judgment” was being called into question, contributing to increased risk of burnout and turnover.
“Providers and caregivers are accountable for their care, but trial attorneys promote a narrative that suggests any patient decline is avoidable and grounded in negligence, and willfully disregards the nuances of individualized clinical care and prognosis,” a GHCA / GCAL spokeswoman said. “Our state’s long-term care communities are committed to meeting the needs of Georgia’s growing population of seniors, and the reform efforts that have been taken up by Gov. Kemp are vital to fostering accountability and ensuring resources are directed where they are needed most — on high-quality healthcare of our patients and residents.”
A report released in November by the state Office of Commissioner of Insurance and Safety Fire reported “crucial insights for policymakers to improve the efficiency of the insurance industry and enhance the overall legal landscape.”
The publication noted a 25% increase in claims from 2014 to 2023 and concluded that inflated medical costs and third-party litigation funding have affected liability insurance. The report recommended target policy reforms for policymakers to create a “more sustainable legal landscape.”
Willis Towers Watson released an analysis in October showing that nationally, senior living and care providers could see their professional liability and property insurance increase by 5% to 10% in 2025, with intense scrutiny on loss development and difficult venues.
In 2023, the American Tort Reform Association named Georgia its top “Judicial Hellhole” after a series of “nuclear verdicts.”
Kemp indicated that he might call a special session of the legislature to fully address tort reform.
Source: McKnights Seniorliving