Rate Request: 40 percent increase
Decision: Disapproved on September 23, 2013
On August 9, 2013, the Physicians Mutual Insurance Company filed for a 40 percent increase on its long-term care plans that were sold between 2002 and 2004. These plans are no longer being marketed.
As of December 31, 2012, there are 14 policies currently in effect in Connecticut. The company reported that it sought the increase because the anticipated cost of benefits is higher than what the company had projected when it initially priced the plans.
After an actuarial review, the Department determined that the company’s loss ratio – the percentage of the premium spent on claims costs – was much lower than anticipated. Additionally, the Department found that the experience in the small Connecticut market had no appreciable impact on the company’s expenditures nationwide.
As a result, the Department disapproved the increase request on September 23, 2013.