CID: Long-Term Care Rate Filing - Physicians Mutual Insurance Company (Individual: 2003-2004)

Long-Term Care Rate Filing - Physicians Mutual Insurance Company (Individual: 2003-2004)



Rate request: Average increase of 54 percent

Decision: Disapproved, limited to a 15 percent increase

On May 15, 2017 Physicians Mutual Insurance Company requested an average rate increase of 54 percent on a small block of business of P105 individual long-term policies which were sold from 2003 to 2004 and are no longer being issued.

There are 7 policies in force in Connecticut.

The company said in its filing that the increase is because the cost of the benefits it anticipates paying out far exceeds the estimates when this product was originally priced. Part of that is due to people living longer, holding onto their policies longer and drawing on benefits longer than originally assumed.

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.

After an actuarial review, the Department determined that the performance of the company’s national block of business is deteriorating and provides more credible data than Connecticut’s much smaller sampling, therefore some increase is warranted. As a result, the Department disapproved the initial increase request and limited it to a 15 percent increase on September 6, 2017.

Physicians Mutual said it would offer its customers options to reduce or change benefits to offset the impact of an increase.


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Find the filing documents here at Long-Term Care Insurance Rate Filing


Content Last Modified on 9/7/2017 10:07:05 AM