Rate request: 192 percent average increase
Decision: Under Review
Public Comment Period: October 16, 2014 to November 4, 2014
On October 8, 2014, Union Security Insurance requested an average increase of 192 percent increase on certain individual long-term care insurance policies. The policies were initially offered in 1998 and are no longer being actively marketed.
There are approximately 500 policies in force in Connecticut.
The company said it sought the increase because the number of people expected to draw lifetime benefits on a nationwide basis is significantly higher than what was initially anticipated when the company first priced the product. The company also factored in the increase in the cost of benefits since the product had originally been priced and said the cost to maintain those benefits for the lifetime of the plan is higher than anticipated.
In its filing to the Department, Union Security said it will work with its customers to make benefit and other changes to mitigate the impact.
If approved, the average yearly premium in Connecticut would rise from $2,160 to $6,381 or approximately $350 more per month. Under a 2014 Connecticut law, any increase of more than 20 percent must be spread out over three years to the policyholder.