Illinois Foster Agencies Falsely Claim There is a True Insurance Crisis
Foster care agencies across Illinois claim they are facing an unprecedented insurance crisis. Insurance companies say they are dramatically scaling back coverage for community foster care agencies throughout the state, creating a picture of higher costs and reduced protection for vulnerable children. As a Chicago child welfare practice representing children in the Illinois foster care system, we do not believe that there is a true insurance crisis threatening the very existence of organizations dedicated to protecting our most vulnerable children in foster care.
Insurance providers are increasingly viewing foster care agencies in Illinois as high-risk investments. However, many foster care agencies that hold high practice standards do not pose these threats. Following only several high-profile child abuse lawsuits with significant foster care lawsuit payouts, insurers are either dramatically increasing premiums, reducing coverage limits, or withdrawing from the Illinois child welfare market entirely. Unlike the Illinois Department of Children and Family Services (DCFS), which has damage caps limiting lawsuit payouts to $2 million when sued in the Illinois Court of Claims, private community-based foster agencies in Chicago and throughout Illinois have no such protection. The rationale for privatization has been that these agencies are supposed to deliver safer, better, and improved child welfare placements and services than DCFS provided historically.
The Private Agencies Are Claiming That Foster Children and Families Are at Risk in Illinois
This foster care insurance crisis extends far beyond financial spreadsheets. When Illinois foster agencies face insurance challenges, they say:
- Critical child welfare staff positions may be eliminated to cover rising premiums
- Necessary support services for vulnerable foster children may be reduced
- Illinois foster parent recruitment and training programs may be cut back
- In worst-case scenarios, foster care agencies may be forced to close entirely
Should even a few Illinois foster care agencies close their doors, thousands of foster children could be forced back into an already overburdened DCFS system that lacks the specialized resources these community-based foster care organizations provide.
The Illinois Legislature Must Investigate the Real Factual Truth
Some Illinois foster agencies that have been sued for catastrophically injuring foster children have seen their foster care liability insurance costs skyrocket from $45,000 to over $1 million in just a few years, while simultaneously receiving less coverage for foster care abuse claims. This should be no surprise when their practice standards sadly fall below national practice standards and are negligent. They claim that the money that should be supporting foster children in Illinois is instead being diverted to insurance premiums. However, these agencies need to pay for their horrific mistakes so that injured foster children can obtain the lifetime care they need—just like any other injured children with responsible parents. Foster children need even greater help when they don’t have parents who can afford the therapeutic help and placements that they need.
Potential Solutions for the Illinois Foster Care Insurance Crisis
Although Illinois lawmakers have introduced legislation (Senate Bill 1696 and House Bill 3138) to address this foster care crisis, these are partial solutions where injured foster children pay the price rather than the negligent providers. The proposed bills would:
- Temporarily protect foster care agencies from certain civil liabilities
- Create a task force to develop permanent solutions for foster care insurance
- Provide breathing room for foster agencies while broader fixes are identified
Instead, the Illinois Legislature should collect the real data and identify:
- Which agencies have had insurers pay claims and the specific negligence and injuries and enact true risk management requirements and require improvement plans to improve the system to avoid these horrific tragedies.
- Identify the true profit or losses of these for-profit insurers over the years to determine if there is a real insurance crisis or the agencies are “crying wolf” to exact any reform on the backs of parentless foster children who are injured.
- Study why insurers are not doing what they have done as in other higher risk industries raising premium for the providers with higher loss histories and deciding whether to create a risk pool to subsidize their insurance costs temporarily until they improve their practice standards and loss records through corrective action supervised by DCFS and other qualified experts or letting them face their just consequences of natural selection and failures and relegating to their Boards the decision of whether they should privately subsidize them through fundraisers, bring in new management and fight for their survival.
What This Means for Illinois Foster Families and Child Advocates
For families involved with foster care in Illinois – whether as foster parents, biological parents working toward reunification, or relatives providing kinship care – this crisis threatens the stability and continuity of care that foster children desperately need. However, substandard and negligent child welfare practices should not have been tolerated.
For Illinois attorneys and child advocates, this situation highlights the delicate balance between holding negligent foster agencies accountable while ensuring the Illinois foster care system remains intact for those who need it.
When Legal Action Against Illinois Foster Care Agencies is Necessary
While preserving foster agencies in Illinois is critically important, it should never come at the expense of protecting defenseless children who are in state custody from harm. When foster agencies fail to provide proper oversight, screening, or intervention, children can suffer devastating consequences , including foster care abuse and neglect. In these cases, legal action remains an essential accountability mechanism.
If your child has suffered abuse or neglect while in the Illinois foster care system, it’s crucial to consult with Chicago attorneys who specialize in child welfare law and understand the complex foster care systems involved.
Working Toward Better Solutions for Illinois Foster Children
At Justice for Kids, we believe in both holding negligent foster care agencies accountable and strengthening the overall Illinois foster care system. The current foster care insurance crisis demands innovative solutions that protect children’s rights while ensuring the continued operation of quality foster care providers throughout Illinois.
As this situation evolves, our Justice for Kids team remains committed to advocating for policies that prioritize foster children’s safety while preserving the community-based infrastructure that serves thousands of Illinois families in the foster care system.
Julianna B. Walo, Esq.
Attorney, Justice for Kids
Kelley Kronenberg-Chicago, IL
754-888-KIDS (5437)
Email
Bio
Comments are closed here.