Care homes taking Covid patients can now use state-backed insurance scheme

Care homes in England that have agreed to take Covid patients from hospital can now use a state-backed insurance scheme.

In October last year, local authorities were asked to identify care homes that would be designated settings for COVID-19 patients after they have been discharged from hospital. However take up has been slow.

In order to boost the take up, the government has introduced an insurance scheme for care homes that will last until the end of March.

Nadhim Zahawi, minister for vaccine deployment, said in a written ministerial statement to Parliament: “We know that obtaining sufficient insurance to accept Covid positive patients and sign up to become a designated setting has been a barrier for some care home providers wishing to join the scheme.

“Given the severity and immediacy of the pressures facing the NHS, we want to take all possible steps to remove obstacles to sufficient local designated settings provision. This includes ensuring that where the creation of designated settings has created barriers to insurance, the government will introduce a targeted and time-limited indemnity offer to fill gaps in commercial cover.”

Mr Zahawi revealed that the “indemnity will cover clinical negligence, employer’s and public liability where a care provider seeking to become a designated setting is unable to secure sufficient commercial insurance, or where an existing provider has been operating without sufficient cover”.

The insurance will be covered by the Clinical negligence Scheme for Trusts, an existing state scheme and indemnity arrangements will be supervised by the Department for Health and Social Care (DHSC) and administered by NHS Resolution. The indemnity will cover designated settings until the end of March 2021, with a review point in mid-February.

The care homes being chosen by the Care Quality Commission (CQC) as designated settings have high infection control standards and provide care for older people or people with learning disabilities or those with physical disabilities. They are expected to be 'standalone units' or care homes with 'separate zoned accommodation and staffing'.

Vic Rayner, executive director of the National Care Forum, which represents not-for-profit social care providers called the statement “welcome news” and said: “Providing full indemnity is absolutely the right thing to do.

“The issue of access to appropriate insurance has dogged much of social care since the outset of the pandemic, and this important step forward in announcing a state backed scheme for designated settings will enable providers operating these schemes to play their part in supporting the NHS and the wider community with assurance.”

However she added that “this announcement though a positive step, does not go far enough. It is a temporary solution only committed to until the end of March, with a review due in mid-February.”

The NCF said it will continue to push the government to address the wider insurance issues for the sector and to extend the indemnity arrangements to the entire social care sector on parity with the NHS.

Many care homes have seen large increases to their insurance premiums as well as restrictions and exclusions preventing adequate cover for COVID-19 related claims.

Care England, the largest representative body of independent adult social care providers, has also welcomed the government’s decision to help designated care sites with their insurance.

Martin Green, its chief executive said: "We are delighted that the government has listened to Care England about the critical issue of insurance.

“We look forward to working with the government to make the best of this important decision and will continue to campaign to have the difficulties associated with securing insurance cover extended to the rest of the care home sector who are crippled by sky high premiums and lack of Covid cover.”

The Care Quality Commission has revealed that as of 12 January, it had approved 135 care homes in England as designated settings, with some local authorities choosing not to participate in the scheme.