CID: Long-Term Care Rate Filing - MedAmerica Insurance Co. (Individual 2002-2007)

Long-Term Care Rate Filing - MedAmerica Insurance Co. (Individual 2002-2007)

Rate request: 135 percent average increase

Decision: Disapproved, limited to an 18 percent increase on June 21, 2017

On April 5, 2017, MedAmerica Insurance Company requested an average increase of 135 percent for group long-term care plans. The plans were sold in Connecticut from 2002 to 2007 and are no longer being marketed.

There are 187 policies currently in effect in Connecticut.

The company said in its filing that the increase is needed because of higher than expected claims costs and a longer duration of paying those claims that was anticipated when this product was originally priced. It also noted that the interest it is receiving on its investments earmarked to pay for future claims is lower than expected.

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 noted that while experience is deteriorating, the overall experience for both the company’s Connecticut block of business and nationwide is still performing better than expected. As a result, the Department disapproved the initial increase request and instead limited the increase to 18 percent.


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

Content Last Modified on 6/21/2017 10:47:49 AM