Residential providers, family-services leaders and youth-service advocates told the task force that rising liability insurance costs are narrowing the market of in-state beds for adolescents with severe behavioral needs, leaving some young people to wait in emergency departments or be placed out of state.

"They found the insurance. The unfortunate news is that cost skyrocketed. It was substantial, more than half a million dollars a year just for the the single year premium to be able to have those types of, clients inside their facility," Andy Somerville, executive director of the Wyoming Association of Mental Health and Substance Abuse Centers, said of 1 provider's experience finding coverage.

Providers described three insurance-related problems: property insurance market reductions that affect many businesses in Wyoming; rising general liability and professional-malpractice premiums for residential programs that serve high-risk adolescents; and the practice by some carriers of terminating coverage or sharply raising premiums after single claims or child-protection investigations.

Nicole Hauser, executive director of Cathedral Home for Children, told the task force a provider she represents saw a premium jump: "our premium increased 17% in 1 year." Providers said some programs had to secure coverage in specialty markets such as Lloyd's of London, at much higher cost.

Why it matters: Task force members heard that Wyoming likely has 10 to 20 very high-needs adolescents at any given time who need intensive residential treatment and that shrinking insurer capacity or rising premiums threaten in-state options. When in-state placements are unavailable, children often remain in emergency departments or are moved to out-of-state programs, disrupting family ties and increasing state expense.

Funding and licensure interplay

Task force members and witnesses noted that residential placements for adolescents often rely on braided funding from Department of Family Services, Department of Health and local education budgets; Nicole Hauser and other providers said the combination complicates pricing for private insurers. Christie Gordy, senior administrator at the Department of Family Services, told the committee the department has licensure requirements for residential programs and has engaged the Insurance Commissioner's office to discuss options for insurers and providers.

Discussion and outcomes

The task force reviewed last year's work on this issue, including a request to explore changes to the Governmental Claims Act and other state policy ideas. Providers said a cap or reinsurance program might reduce premiums but described concerns about feasibility. The task force did not advance a specific bill on the topic at this meeting; members asked agencies and provider associations to return with additional data and recommended examining options including limited state-backed reinsurance, targeted liability limits for narrowly defined placements, or other risk-pooling models.

Ending

Providers said they will continue to track premiums and notify the task force if a provider withdraws services; the task force asked agencies to return with additional cost data and legal options for consideration in future meetings.