AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO LONG TERM CARE FACILITIES

Plain English Breakdown

The official source material does not provide specific information on what happens to residents if their facility loses its license due to lack of insurance.

Law Requiring Long-Term Care Facilities to Have Insurance

This law requires long-term care facilities in Delaware to have insurance coverage of at least $1 million per claim and $3 million aggregate for general liability and professional liability, with abuse and molestation coverage included.

What This Bill Does

• Requires long-term care facilities to maintain insurance policies that provide a minimum of $1 million per claim/$3 million in the aggregate each for general liability and professional liability, including abuse and molestation coverage.
• Makes it necessary for these facilities to show proof of this insurance to receive or keep their license in Delaware.
• Requires insurance companies to notify the Department within 14 days if there is any lapse or cancellation of coverage for a long-term care facility.
• Revokes the license of a facility that does not follow the insurance requirement.

Who It Names or Affects

• Long-term care facilities such as nursing homes, assisted living places, and group homes for people with mental illness in Delaware.

Terms To Know

Covered long-term care facility

A place like a nursing home or an assisted living center that needs to have insurance under this law.

Aggregate coverage

The total amount of money the insurance can pay out for all claims, not just one claim.

Limits and Unknowns

• This bill has passed both chambers but needs further action before becoming a law.
• It does not specify what happens to residents if their facility loses its license due to lack of insurance.

Official Summary Text

AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO LONG TERM CARE FACILITIES
Long-term care facilities provide an important function in caring for the most vulnerable populations of the State of Delaware. However, these facilities are not required to have liability insurance to protect residents from harm caused by the facility. The bankruptcy filing of Genesis Health Care, one of the nation’s largest nursing home providers, which has operated facilities in Delaware, shed new light on the problems of long-term care facilities not being required to have liability insurance. Hundreds of claims across the country, including Delaware claims, related to substandard care causing injury or death to individuals face having no legal recourse to hold these facilities accountable. These claims include claims which Genesis had agreed to resolve for set amounts, which were to be satisfied with payments made in the future. Genesis filed for bankruptcy prior to making payments on many of these claims, including several claims resolved in Delaware, forcing the claimants to engage in a new and expensive process to pursue justice they had already resolved on their behalf or on behalf of their loved one.

This Act requires long-term care facilities to have insurance policies that provide a minimum of $1 million per claim/$3 million aggregate coverage each for general liability and professional liability. This Act takes effect 180 days after enactment.

Current Bill Text

Legislation Document

SPONSOR:

Sen. Mantzavinos & Sen. Poore & Rep. K. Johnson

Sens. Hoffner, Wilson; Reps. Gorman, Morrison, Osienski

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 333

AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO LONG TERM CARE FACILITIES

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Title 16 of the Delaware Code by making insertions as shown by underline as follows and by redesignating accordingly:

§ 1102. Definitions

( ) “Covered long-term care facility” means a nursing facility, assisted living facility, or group home for persons with mental illness as each is defined in

this section.

§ 1120.

Insurance Requirement

(

a) A covered long-term care facility

must maintain insurance coverage in a minimum amount of $1 million per claim/$3 million in the aggregate each for general liability and professional liability, respectively. These policies must also include abuse and molestation coverage.

(b) A covered long-term facility must, as a condition of receiving and maintaining an active license, certification, or other authority to provide health-care services in the State of Delaware, furnish proof of the required insurance to the Department.

(c) A covered long-term care facility must provide proof of the required insurance with any application for renewal of such license, certification, or authority.

(d) An insurance company providing coverage to a covered long-term care facility must notify the Department within 14 days of any lapse in or cancellation of coverage for the covered long-term care facility.

(e) Failure to maintain minimum insurance limits under this section will result in revocation of the covered long-term care facility’s license.

Section 2. This Act takes effect 180 days after enactment.

SYNOPSIS

Long-term care facilities provide an important function in caring for the most vulnerable populations of the State of Delaware. However, these facilities are not required to have liability insurance to protect residents from harm caused by the facility. The bankruptcy filing of Genesis Health Care, one of the nation’s largest nursing home providers, which has operated facilities in Delaware, shed new light on the problems of long-term care facilities not being required to have liability insurance. Hundreds of claims across the country, including Delaware claims, related to substandard care causing injury or death to individuals face having no legal recourse to hold these facilities accountable. These claims include claims which Genesis had agreed to resolve for set amounts, which were to be satisfied with payments made in the future. Genesis filed for bankruptcy prior to making payments on many of these claims, including several claims resolved in Delaware, forcing the claimants to engage in a new and expensive process to pursue justice they had already resolved on their behalf or on behalf of their loved one.

This Act requires long-term care facilities to have insurance policies that provide a minimum of $1 million per claim/$3 million aggregate coverage each for general liability and professional liability. This Act takes effect 180 days after enactment.

Author: Senator Mantzavinos