Assisted living facilities offer a much-needed service to senior adults and others who need daily help with tasks. For many, though, the expense of an ALF can be cost-prohibitive. Many residents of such facilities can afford it because of Medicare and Medicaid coverage, the health insurance market is constantly changing, and assisted living facilities need protection beyond what their residents’ health insurance can provide. ALF risk management coverage can help your assisted living clients minimize liability that could result from healthcare insurance market trends projected to continue through 2027.

 

More People Are Choosing Silver Plans

Consumers shopping in the health insurance marketplace will find that they can opt for a bronze, silver, or gold plan, based on the level of coverage, premium, and deductible they want. More people are choosing silver-tier plans, and this trajectory is posed to continue through to 2027. What does this mean for insurers covering assisted living facilities? Silver plans often do not cover stays in assisted living, which means that ALFs could see a dip in residency. ALF managers need ALF risk management strategies to plan for this potential.

Seniors Comprise a Major Insurance Consumer

Just as more people are choosing silver plans, more people in the health insurance marketplace are seniors. This population is growing steadily and will likely continue to grow into 2027. Why are so many senior citizens shopping for healthcare insurance? As people live longer and prioritize their health, elders are increasingly represented amongst insurance shoppers. Whether health insurers will adapt to cover seniors more adequately is yet to be seen. The fact remains that the average age of an insurance consumer is on the rise, and ALFs are in a position to benefit if health insurers respond appropriately.

 

Insurance Costs Are on the Rise

In addition to the rising average age of insurance consumers, there is a rising average cost that individual ALFs and insureds will have to grapple with. This might seem removed from the business of an assisted living facility, and even more removed from ALF risk management insurers, but rising costs tend to affect everybody. As insurance premiums go up, ALF care will become inaccessible to some, causing a potential slow down in residencies. This lost income for an ALF can be devastating, and it is one of many liabilities that ALFs face every day. Some of the other most common ALF liabilities include:

  • Injury to staff members
  • Mishandling of healthcare
  • Resident falls and injuries

Preparing for the unexpected is an essential part of running an assisted living facility successfully and caring for its residents effectively. Whether your clients are calculating potential losses in residents or defending against the liability of an injury, they need coverage from an ALF insurance agent.