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On January 31, 2013, Metropolitan Life Insurance Company (MetLife) requested a 58 percent increase on seven of its LTC-2 policy forms, which were sold from 2005 to 2012. They are no longer being marketed. There are approximately 3,200 policies in force in Connecticut.

 

This is the first time MetLife had sought a rate change on this particular group of policies, which are guaranteed and renewable for life.  The company said in its filing that the increase is needed because over the life of these polices the expected demand for benefits and the higher cost of those benefits “far exceeded both original pricing expectations and state minimum requirements.” 

 

Unlike medical health insurance with premiums set to cover expenses incurred only during the upcoming policy year, long term care premiums are set to cover expenses that are not expected to occur until a distant date, sometimes 20 years in the future. The Department received no public comments during the 20-day public comment that the filing remained open.

 

After an actuarial review, the Department determined that the claims costs on this block of business –particularly in Connecticut -  were much lower than the company had projected. Therefore, the Department rejected MetLife’s request on March 1, 2013, ruling that any increase at this time would be excessive.

 

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