The Aged Care Reform – Insurance Implications for Registered Providers
Snapshot
- The federal government’s new rights-based Aged Care Act will commence on 1 July 2025, introducing a significantly broadened risk landscape for Registered Providers and their Associated Providers.
- Long-tail insurance policies such as Directors’ & Officers Liability, Medical Malpractice, General Liability, and Statutory Liability insurance are designed to indemnify Registered Providers for a myriad of statutory and common law exposures and are well placed to provide indemnity for the new regime. Certain key coverage terms should be carefully reviewed to ensure optimal risk transfer is in place.
- Registered Providers should also turn their minds to reviewing and updating their risk management frameworks and operations to ensure compliance with the new regime, turning attention to both internal governance structures and the management of Associated Providers.
The aged care risk landscape in Australia is undergoing transformative changes with the introduction of the new federal Aged Care Act 2024, set to take effect from 1 July 2025. This whitepaper provides a comprehensive overview of the insurance risk transfer implications for aged care providers, their management, and their staff. It highlights critical areas of focus for risk leaders and C-suite executives to ensure compliance and optimal risk management in this evolving environment.
Key Points:
- Expanded Risk Landscape: The new Aged Care Act introduces a broadened risk landscape aimed at improving the quality of care for older people. This includes new statutory positions, expanded duties, and enhanced regulatory enforcement powers.
- Insurance Implications: Existing insurance programmes, such as Directors’ & Officers’ Liability, Medical Malpractice, and General Liability insurance, are largely capable of providing indemnity under the new regime. However, specific adjustments may be necessary to ensure comprehensive risk transfer.
- Compliance and Risk Management: Registered Providers must update their risk management frameworks and review their operations to ensure compliance with the new regime. This includes restructuring governance functions, pay structures, and contractor management procedures.
As the aged care sector navigates these significant reforms, it is crucial for risk leaders and executives to stay informed and proactive. Dive into this whitepaper to gain valuable insights and practical recommendations for optimising risk management and ensuring compliance.
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If you’d like to speak to the National Aged Care Practice Leader about what these legislative changes could mean for your business, email Angela San Diego at angela.san.diego@aon.com.
