CID: Long-Term Care Rate Filing - MedAmerica Insurance Co. (Individual SPL2)

Long-Term Care Rate Filing - MedAmerica Insurance Co. (Individual SPL2)

Rate Request: 13.4 percent average increase

Decision: Under Review

Public Comment Period: June 29 to July 18, 2017

On April 17, 2017, MedAmerica Insurance Company requested an average increase of 13.4 percent for individual long-term care plans. The plans were sold in Connecticut from 2007 to 2014 and are no longer being marketed.

There are 223 policies currently in effect in Connecticut.

The company said in its filing that the increase is needed because more policies are in force than originally projected and because of a persistently low interest rate environment. The company has sought an earlier premium increase on this block of business that varied by age of the policy holder, however the Insurance Department requires that any price change applies to all policyholders with no variation with respect to age.

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.

The company noted it would offer its customers options to reduce or change benefits to offset the impact of an increase. If approved, the new rates would take effect 60 days after the company notifies its customers.


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

Content Last Modified on 6/28/2017 3:36:58 PM