CID: Long-Term Care Rate Filing - Mutual of Omaha Insurance Company (Individual: 2004-2009)

Long-Term Care Rate Filing - Mutual of Omaha Insurance Company (Individual: 2004-2009)

Rate request: 18.2 percent

Decision: Disapproved, limited to 15% increase on February 20, 2018.

On November 8, 2017, Mutual Omaha Insurance Company requested an 18.2 percent increase on a block of business of individual long-term policies sold from 2004 to 2009 and are no longer being marketed. There are approximately 270 policies in force in Connecticut.

The company said in its filing that the increase is needed because of higher anticipated claims cost due to more policies in effect than expected, people are living longer and benefits will be paid over a longer period of time.

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 while this small block of business has had a limited amount of claims activity, the experience is deteriorating. As a result, the Department disapproved the initial rate increase request and limited it a 15 percent increase on February 20, 2018.

The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase.


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

Content Last Modified on 2/20/2018 12:40:24 PM