CID: Long-Term Care Rate Filing - Brighthouse Life Insurance Company (Individual-Nursing home)

Long-Term Care Rate Filing - Brighthouse Life Insurance Company (Individual-Nursing home)



Rate request: 111 percent increase

Decision: Disapproved, limited to a 40% increase on January 24, 2018.

On October 11, 2017, Brighthouse Life Insurance Company requested an average increase of 111 percent for a small book of business of individual long-term care that cover nursing home care. The plans were marketed from 1998 to 2001 and are no longer being offered. There are 13 policies currently in effect in Connecticut.

The company said the rate increase is needed because the benefit costs far exceed what the company had originally projected when it originally priced these products. Brighthouse says it has been paying benefit costs longer than expected and there are more policies in effect that what the company had anticipated.

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 that while the experience on this small block of business is deteriorating and costs are far higher than expected, the initial increase request of 111 percent is excessive. However, the company has already spent well the statutory loss ratio of 60 percent, meaning at least 60 cents of every premium dollar must be spent on benefits over the life of the policy. As a result, the Department limited the increase to 40 percent on January 24, 2018.

The company said it would offer its policyholders benefit options in order to mitigate the impact of a rate increase. Under Connecticut law, increases of 20 percent or more must be phased in over three years.


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


Content Last Modified on 1/26/2018 9:01:27 AM