Rate request: 25 percent average increase
Decision: Under Review
Public Comment Period: November 21 to December 20, 2018
On November 19, 2018 Berkshire Life Insurance Company of America requested an average increase of 25 percent for several of its individual long-term care plans. The plans were marketed from 2005 to 2009 and are no longer being marketed.
There are approximately 80 policies currently in effect in Connecticut.
The company said it sought the increase because more policies are in force that originally anticipated and that is resulting in higher than expected claims costs and loss ratios. The current premiums are inadequate to meet those costs over the lifetime of the policies.
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 allow policyholders to change their benefits in order mitigate the impact of a higher rate.
If approved, the new rates would be implemented 60 days after the company notified its customers. Under Connecticut law, rate increases of 20 percent or more must be phased in over three years or more.