CID: Long-Term Care Rate Filing - Prudential Insurance Company of America (Group)

Long-Term Care Rate Filing - Prudential Insurance Company of America (Group)

Rate Filing Review: 40 percent average increase
Decision: Under Review
Public Comment Period: September 26, 2017 to October 16, 2017

On July 24, 2017, the Prudential Insurance Company of America requested an average rate increase of 40 percent on certain group long-term insurance policies used by employers for their employees. The policies were initially issued in 2002 and are no longer being marketed.

There are approximately 4,100 policies in force in Connecticut.

The company said it sought the increase because the number of people expected to draw lifetime benefits on a nationwide basis is significantly higher than what was initially anticipated when the company first priced the product. The costs to maintain those benefits for the lifetime of the plan are also higher than anticipated.

“The rate increase is needed to help ensure that future premiums, in combination with existing reserves, will be adequate to fund anticipated claims,” the company noted in its filing. “We have tried to keep these increases as low as reasonably possible in the hope of minimizing the impact on our certificate holders.”

Prudential said it will work its customers to change their coverage options in order to mitigate the impact of a large rate increase.

Under Connecticut law, increases of 20 percent or more must be phased in over three or longer. If approved the new rates would take effect 60 days after the company notifies customers.

Find the filing, brief summary and public comment section here at All Current Rate Filings

Content Last Modified on 9/28/2017 4:51:49 PM