Florida Nursing Home Malpractice Insurance Requirements

Florida nursing homes have been hit with a high number of lawsuits in the past. Since the early 2000's, the state legislature has been looking to correct the issue by working to change the claims reporting process, rather than increasing the insurance requirements. Malpractice insurance is not mandated by law for nursing homes specifically, but rather a requirement to carry liability insurance has become standard practice.

Reporting Standards

• Due to the high number of claims in Florida, many insurance companies stopped covering nursing home facilities in the state. The legislature recognized this as a significant problem. Lawmakers sought a reporting system that would pull the licenses of facilities in a more expedited fashion. This was put in place to hold the facilities accountable and keep costs in check for the insurance companies. This allowed the companies to continue insuring nursing homes for liability.

  These reporting standards include when and how all claims against an entity must be presented to the state. It also included a new online system for the risk manager at any facility to report issues immediately. And a follow-up protocol was established for settling claims. There are hefty fines in place for non-compliance. Moreover, the threat of a license suspension tends to keep the nursing homes honest.

Medicare Standards

• As of August 2010, Florida does not have any additional requirements for liability insurance. It is offered as a standard package to meet the requirements of Medicare/Medicaid. All facilities must meet the standards dictated by the federal government, which currently are adjusted every 18 to 24 months as Medicare policy changes.

All Nursing Homes Must Carry Liability

• Previous to 2002, Florida did not require that all nursing homes meet Medicare's standards. If a nursing home was not going to accept Medicare as a form of payment, the facility could still be licensed. After an exhaustive study, Florida changed the law in 2003 to require all nursing homes to comply with the Medicare minimums for liability insurance. This was enacted not only to protect the patients, but as part of the deal with the insurance companies to bring the coverage back to the state. It meant the companies would have more clients and a greater guaranteed income.