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: Disapproved, limited to a 15 percent increase on July 13, 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.

After an actuarial review, the Department determined that while the claims experience is deteriorating the overall loss ratio for the Connecticut and nationwide block of business is performing better than expected. As a result, the Department disapproved the initial rate increase request and limited the increase to 15 percent on July 13, 2017.

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 documents here at Long-Term Care Insurance Rate Filing

Content Last Modified on 7/13/2017 12:51:25 PM