Study: LTC Liability Costs are Up, But Frequency is Down

According to a new study from Aon Corp. and the American Health Care Association (AHCA), long-term care liability costs are being driven up by a 4 percent annual increase in the average claim size.

Between 2005 and 2010, the average liability claim jumped from $125,000 to $153,000. Even though the that number has gone up, the frequency of liability claims has actually gone down (from 1.1 percent in 2003 to 0.9 percent in 2010). That figure is expected to drop even farther in 2011.

The researchers cautioned that jump in claim size outweighs the reduction in claim frequency.

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