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 Filing Review: 111 percent increase
Decision: Under Review
Public Comment Period: November 28, 2017 to December 17, 2017

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.

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.

If approved the new rate will be implemented at least 60 days after policyholders have been notified. The average yearly premium would rise from $1,745 to $3,685 or approximately $160 a month.

Find the filing, brief summary and public comment section here at All Current Rate Filings

Content Last Modified on 11/27/2017 2:15:36 PM