CID: Long-Term Care Rate Filing - Metropolitan Life Insurance Company (Group-AARP 2008)

Long-Term Care Rate Filing - Metropolitan Life Insurance Company (Group-AARP 2008)

Rate request: 7.06 percent increase

Decision: Approved August 8, 2018

On June 8, 2018, Metropolitan Life Insurance Company requested an average increase of 7.06 percent on AARP group long-term care policies that offer reimbursement for care delivered in nursing homes, assisted living, at home and for respite services.

There are just under 30 policies in force in Connecticut. They were first issued in Connecticut in 2008 and are no longer being marketed.

The company said the increase is needed because of a higher demand for benefits over a longer period of time than originally projected when the policies were initially priced.

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 the experience on this block of business has deteriorated, even from last year’s filing and anticipates it will continue to deteriorate. As a result, the Department approved the rate request on August 8, 2018.

The company said it would offer its customers options to reduce or change benefits to offset the impact of an increase. The new rates take effect 60 days after the company notifies policyholders.


Find the filing documents here at Long-Term Care Insurance Rate Filing

Content Last Modified on 8/8/2018 5:22:18 PM