CID: Long-Term Care Rate Filing - MedAmerica Insurance Co. (CT Partnership Individual)

Long-Term Care Rate Filing - MedAmerica Insurance Co. (CT Partnership Individual)

Rate Request: 53 percent increase over 5 years
Decision: Under Review
Public Comment Period: November 16 to December 5, 2018

On November 8, 2018, MedAmerica Insurance Company requested an overall increase of 53 percent for CT Parternship individual long-term care plans. The plans were sold in Connecticut from 2000 to 2003 and are no longer being marketed.

There are 45 policies currently in effect in Connecticut and the company is asking for five annual increases to achieve the overall 53 percent increase.

The company said in its filing that the increase is needed because of higher than expected claims costs and that the experience on this block of business is expected to worsen. These policies have been approved by the Connecticut Partnership for Long-Term Care, a private/public alliance that helps policyholders protect their assets.

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 it would offer its customers options to reduce or change benefits to offset the impact of an increase. Under Connecticut law, increases of 20 percent or higher must be phased in over three or more years.

If approved, the new rates would take effect 60 days after the company notifies its customers.

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

Content Last Modified on 11/15/2018 11:23:01 AM