CID: Long-Term Care Rate Filing - Metropolitan Life Insurance Company (Group 2005-2006)

Long-Term Care Rate Filing - Metropolitan Life Insurance Company (Group 2005-2006)

Rate Request: 23.1 percent increase

Decision: Under Review

Public Comment Period: April 13 to May 2, 2017

On April 10, 2017, Metropolitan Life Insurance Company requested an average increase of 23.1 percent on AARP group long-term care policies marketed in Connecticut from 2005 to 2006. They are no longer being sold.

There are approximately 90 policies in force in Connecticut.

The company said in its filing that the increase is needed because of a much expected higher demand for benefits over a longer period of time than originally projected when the policies were originally priced. Without the increase, MetLife said it expects to spend about $1.18 on benefits for every $1 of premium taken in.

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 company noted that if the increase is approved it would apply it in three phases in keeping with state law that requires any long-term care rate over 20 percent to be spread out over three or more years. If approved the average annual premium would increase over the three years from $1,766 to $2,174.

The company also said it would offer its customers options to reduce or change benefits to offset the impact of an increase.


Find the filing, brief summary and public comment section here at Health Insurance Rate Filings

Content Last Modified on 4/12/2017 1:38:50 PM