Rate request: 39 percent average increase
Decision: Disapproved May 30, 2014
On April 14, 2014, MedAmerica Insurance Company requested an average increase of 39 percent for its individual long-term care plans. The plans were sold in Connecticut from September 2003 through January 2010 and are no longer being marketed. There have been no rate increases to date on this particular block of business in Connecticut.
There are 572 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 the company is receiving on its investments earmarked to pay for future claims is lower than expected.
The Department received no public comments on this filing.
After an actuarial review, the Department determined that the experience on this particular product for MedAmerica is better than expected both in Connecticut and nationwide. As a result, the Department disapproved the requested increase on May 30, 2014, noting that the current rates are neither excessive, inadequate nor unfairly discriminatory.