January 22, 2025

Tort Reform: A Crucial Step to Support Senior Care Providers in Georgia

Tort Reform: A Crucial Step to Support Senior Care Providers in Georgia

A group of diverse older people chatting with a counsellor during a therapy session in a residential care home

ATLANTA, GA – Senior living advocates in Georgia are welcoming Governor Brian Kemp’s recent push for comprehensive tort reform. They see this initiative as a significant step toward addressing the mounting challenges faced by senior care providers, including soaring insurance premiums and increasing litigation costs.

The Urgent Challenges in Senior Living

Catie Ramp, President and CEO of the Georgia Senior Living Association, has highlighted the critical state of the industry. “For years, excessive litigation and inflated damage awards have driven insurance premiums to unmanageable levels,” she stated. “This growing financial burden threatens both the affordability and accessibility of care for Georgia’s elderly population.”

During his State of the State address, Gov. Kemp emphasized the impact of these issues on healthcare providers, particularly those serving seniors. He noted that rising insurance costs and legal risks not only disrupt the workforce but also endanger the survival of senior care facilities.

Legislative Steps Toward Reform

In 2022, Georgia began addressing these issues with the passage of House Bill 1114. This legislation allowed the state’s insurance commissioner to collect data on insurance industry trends, identify areas for reform, and take steps to prevent insurers from exiting the state. Senior living providers actively participated in these discussions, sharing their struggles with the rising costs of insurance and the challenging legal environment.

Gov. Kemp described the far-reaching consequences of the crisis. Small business owners in the healthcare sector have reported insurance premium increases ranging from 30% to over 100% in recent years. “These hikes forced many to halt hiring, delay growth, or face the tough decision of whether to keep their doors open,” Kemp explained.

Positive Outlook for the Senior Living Sector

Industry leaders are optimistic about the potential impact of tort reform. Ginny Helms, President and CEO of LeadingAge California, emphasized the importance of limiting excessive verdicts to stabilize the industry.

“Tort reform is essential to making long-term care more affordable for seniors,” Helms stated. “It will also help retain medical directors, many of whom are considering leaving the field due to high insurance costs and the constant threat of lawsuits.”

Helms also stressed the need to direct resources toward programs that directly benefit seniors. She pointed to initiatives like chaplaincy programs and services for low-income residents who need assistance to age in place. “We need to focus our funds on enhancing care, not on unnecessary legal payouts,” she said.

Legal Reforms and Their Broader Impact

The Georgia Health Care Association and the Georgia Center for Assisted Living have also voiced their support for Kemp’s reform efforts. A spokesperson for the organizations highlighted the detrimental effects of aggressive legal tactics on caregivers.

“While providers are accountable for the care they deliver, trial attorneys often promote narratives that disregard the complexities of individualized care and prognosis,” the spokesperson said. “This creates an environment where clinicians feel their professional judgment is under constant scrutiny, leading to burnout and staff turnover.”

The organizations see tort reform as essential for ensuring that resources are directed toward patient care and not diverted by inflated legal costs.

Insights from Recent Studies

A report released in November by the Georgia Office of Commissioner of Insurance and Safety Fire offered key insights into the challenges facing the insurance industry. The report noted a 25% increase in claims between 2014 and 2023, attributing this rise to inflated medical costs and the growing influence of third-party litigation funding.

The report recommended targeted reforms to create a more sustainable legal and insurance environment, which would benefit both providers and insurers.

On a national level, an October analysis by Willis Towers Watson projected that professional liability and property insurance costs for senior living providers could rise by 5% to 10% by 2025. This underscores the urgency of implementing reforms to stabilize the sector.

Georgia’s Troubling Legal Landscape

In 2023, the American Tort Reform Association named Georgia the top “Judicial Hellhole” in the United States. This designation reflected a series of excessively high legal verdicts, further highlighting the state’s urgent need for tort reform.

Looking Ahead

Gov. Kemp has indicated that he may call a special legislative session to address tort reform comprehensively. Advocates are hopeful that these efforts will ease the financial burden on senior care providers and ensure that resources are allocated toward improving care for Georgia’s growing senior population.

“Tort reform is about creating balance in the long-term care industry,” Helms said. “It will allow providers to focus on what truly matters—delivering high-quality care to our seniors.”

As the state moves forward with these reforms, the conversation around litigation and insurance costs is expected to remain a top priority for both lawmakers and senior living advocates.

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