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Foster-care provider warns insurance costs threaten Georgia child-placement services
Summary
Faithbridge CEO Bob Rudermatz told the committee that commercial insurance costs for licensed child-placing agencies have risen dramatically and that many insurers have exited or stopped quoting products needed by providers, threatening capacity to care for foster children.
Bob Rudermatz, president and CEO of Faithbridge, a licensed child-placing agency, told the Insurance Rate Study Committee on Aug. 15 that a national insurance market shift has sharply increased premiums and deductibles for organizations that license and support foster families.
Rudermatz said insurers that once wrote required liability, auto and malpractice coverage for Georgia agencies have scaled back or left the market. He told the panel that Faithbridge — which reported serving more than 6,000 unique children since 2007 and no state-required insurance claims in 18 years — has seen premiums increase 1,200% over five years and a single December renewal increase of $250,000.
Why it matters: Many child-placement agencies and child-caring institutions (CPAs and CCIs) are required by DFCS contract and state regulation to carry specific insurance. Rudermatz said that soaring costs threaten the ability of CPAs/CCIs to operate, potentially reducing placement capacity for children in state custody.
Rudermatz described a statewide survey showing more than 90% of surveyed providers reported large renewal increases (many 50–250%). He asked lawmakers to consider targeted remedies to preserve licensed capacity for vulnerable children, and to work with state regulators and carriers to identify solutions. He and committee members referred to federal changes that extended the statute of limitations for certain child-abuse claims as an exacerbating national factor.
Ending: Committee members thanked Rudermatz and asked the department and interested stakeholders to follow up with data and proposed remedies to sustain licensed placement capacity.
