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: Approved August 25, 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.

After an actuarial review, the Department determined the Connecticut block of business is performing somewhat better than the company’s national block of business, which is performing worse than expected. However, the national data is more credible that Connecticut much smaller sampling and as a result, the Department concluded that a rate increase is warranted. The Department approved the rate request on August 25, 2017.

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


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

Content Last Modified on 9/6/2017 11:03:24 AM