Q&A
Rising insurance costs for foster care agencies and strategies to address the issue
1:59:22
ยท
3 min
Council Member Stevens inquires about the rising costs of liability insurance for foster care agencies and potential strategies to address this issue. Commissioner Dannhauser acknowledges the severity of the problem and outlines ACS's efforts to mitigate it.
- ACS is advocating at the state level for solutions to address rising insurance costs
- The agency is working with individual providers to explore budget modifications to cover increased insurance expenses
- ACS recognizes the need for a statewide solution due to the complexity of the issue
- The agency is collaborating with organizations like COFCCA to raise awareness and seek solutions
- Commissioner Dannhauser emphasizes the importance of addressing this issue to maintain the stability of the entire social services sector
Althea Stevens
1:59:22
get you instances that you have as well.
1:59:25
The next question and final questions are just around, like, insurance and liability.
1:59:30
This is another thing that came up when we were meeting with providers.
1:59:33
The rising cost of general liability and sexual molestation liability insurance is effectively affected providers nationwide.
1:59:41
Last year, nonprofit Insurance Alliances of California announced it would not be renewing coverage in California for foster care agency.
1:59:49
How's ACS working with foster care agencies facing this financial pressure?
1:59:54
And has ACS explored any strategies such as pooled insurance options, advocacy at the state level for funding assistance, or policy changes to help mitigate the burden on providers?
Jess Dannhauser
2:00:05
Yeah.
2:00:06
This is a hugely important issue, and providers cannot operate without insurance in our space for very good reasons.
2:00:17
And the California example is one that we're watching closely and are very concerned about.
2:00:25
We have not seen providers not be able to access care yet here, but we're hearing that there are several who are concerned as they enter into negotiations for insurance.
2:00:35
We have been advocating at the state level to make sure that they understand the issues here, including directly with the governor's office.
2:00:44
They seem to be quite engaged on it.
2:00:48
I understand that the state health insurance leadership has recently acknowledged to Kafka that they are focused on this and concerned.
2:00:57
It really does need to be at the sort of the broadest level of statewide solution because so many of the levers around insurance, the statewide health insurance fund, etcetera, but also providers operate beyond the city borders, and so they have to have umbrella coverage that what we're doing in addition to the advocacy is just working with any provider to say if they're coming to us, if it if it means that they have to spend a little bit more money and need a budget modification or we need to cover it, this is essential.
2:01:29
We need to make sure we have it.
2:01:31
And so, we've put the word out that any provider that is in negotiations that they're worried they're not gonna be able to cover to let us know.
2:01:39
We'll work with them to try to figure out a pathway here.
2:01:42
But we really do absolutely need a statewide solution.
2:01:45
Kafka's been sounding this bell.
2:01:50
Some of it relates to the Child Victims Act.
2:01:52
There's some ongoing court cases that are critical here.
2:01:55
So it's a complex situation, but the bottom line is they have to be able to access insurance.
Althea Stevens
2:02:01
Yeah.
2:02:02
I would love to make sure that we're working together on the advocacy at the state level.
2:02:06
I was just up there not only this weekend, but the week before doing some advocacy.
2:02:10
And so especially, let's figure out how to do that more collaboratively Wonderful.
2:02:14
Because I think that insurance is not just an issue in this space, but in a lot of spaces.
2:02:19
And it's it's not a sexy topic, so I don't think people wanna lead with that, but it is necessary.
2:02:25
And so a lot of programs will lose, you know, contracts and funding because they're not able to get insured.
2:02:30
So we we definitely have to figure out solutions before we get to a place, where it's dire.
Jess Dannhauser
2:02:36
And I'll add, as you know, council member, the agencies that provide foster care in New York City also provide billions of dollars of other services Yep.
2:02:45
Through every system.
2:02:46
So this is an important issue for
Althea Stevens
2:02:48
Yeah.
Jess Dannhauser
2:02:49
The whole sector.
Althea Stevens
2:02:50
Yeah.
2:02:50
Because everything is interrelated, but sometimes we we people don't realize how interrelated it is.
2:02:54
So definitely wanna work with you on that as well.
2:02:57
But with that, I am done with my questioning.
Jess Dannhauser
2:02:59
Thank you.
Althea Stevens
2:03:00
Thank you guys for being here.
2:03:01
I appreciate your expertise and always being so open and honest.
2:03:04
And with that, I'm going to take a quick five minute recess.
Jess Dannhauser
2:03:08
Thank you, council member.