CID: Long-Term Care Rate Filing - Physicians Mutual Insurance Company (Individual: 2004-2007)

Long-Term Care Rate Filing - Physicians Mutual Insurance Company (Individual: 2004-2007)

Rate Request: average increase of 60 percent

Decision: Under Review

Public Comment Period: May 31 to June 19, 2017

On May 15, 2017 Physicians Mutual Insurance Company requested an average rate increase of 60 percent on a small block of business of P145 individual long-term policies which were sold from 2004 to 2007 and are no longer being issued.

There are 22 policies in force in Connecticut.

The company said in its filing that the increase 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.

If approved, any increase of 20 percent or more must be phased in over three years to comply with state law. Physicians Mutual said it would offer its customers options to reduce or change benefits to offset the impact of an increase.


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

Content Last Modified on 5/30/2017 5:35:04 PM