Long-Term Care Rate Filing - MedAmerica Insurance Co. (Group)
Rate request: 39 percent average increase
Decision: Under Review
Public Comment Period: April 23, 2014 to May 12, 2014
On April 14, 2014, MedAmerica Insurance Company requested an average increase of 39 percent for its CD Premium Group long-term care plans. The plans were sold in Connecticut from January 2002 through January 2007 and are no longer being marketed. There have been no rate increases to date on this particular block of business in Connecticut.
Any rate change would affect renewals only. The renewals are guaranteed, meaning the company cannot refuse to renew a policy.
There are 233 policies currently in effect in Connecticut. The company said it sought the increase because of higher claims costs due to longer than expected benefit periods. Another factor is that the interest it the company is receiving on its investments earmarked to pay for future claims is lower than expected.
The company said in an effort to mitigate the impact of any potential increase it will offer its policyholders the option of reducing benefits or maintaining the premium level similar to what they were paying.
Content Last Modified on 4/22/2014 4:45:27 PM