CID: Long-Term Care Rate Filing - John Hancock Life Insurance Company (Individual)

Long-Term Care Rate Filing - John Hancock Life Insurance Company (Individual)

Rate Request: 60.5 percent average increase

Decision: Under Review

Public Comment Period: March 21 to April 10, 2017

On March 15, 2017, John Hancock Life Insurance Company requested an average rate increase of 60.5 percent on a series of its individual long-term care policies, which were sold from 1991 to 2012. There are approximately 8,000 policies in force in Connecticut.

The company reported in its filing that the increase is needed because policyholders are living longer and requiring benefits that are more expensive over longer periods of time.

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 said it will give policyholders the options of reducing benefits to offset higher premiums.

“We are fully aware that a premium increase may be difficult for our policyholders,” the company said in its filing. “Therefore we will provide all policyholders with an array of options which will help them mitigate the impact of any increase.”

The company also told the Department that it will not use rate increases in one state to subsidize costs in another state.

If approved, the new rates would take effect after the company has provided a 90-day notice to its customers. Connecticut law requires that any long-term rate increase of 20 percent or more be phased in over at least three years.


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

Content Last Modified on 3/21/2017 2:24:05 PM