CID: Long-Term Care Rate Filing - MedAmerica Insurance Co. (Individual 2004-2007)

Long-Term Care Rate Filing - MedAmerica Insurance Co. (Individual 2004-2007)

Rate Filing Review: 83.8 percent average increase
Decision: Under Review
Public Comment Period: September 8, 2018 to September 28, 2018

On August 21, 2018, MedAmerica Insurance Company requested an average increase of 83.8 percent for individual long-term care plans. The plans were sold in Connecticut from 2004 to 2007 and are no longer being marketed.

There are approximately 90 policies currently in effect in Connecticut.

The company said in its filing that the increase is needed because of “adverse experience” on this block of business. The company said there have higher than expected claims costs and a longer duration of paying those claims than was anticipated when this product was originally priced.

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 noted it would offer its customers options to reduce or change benefits to offset the impact of an increase. Under Connecticut law, increases of 20 percent or higher must be phased in over three or more.

If approved, the new rates would take effect after the company has given its customers 60 days’ notice.

Find the filing, brief summary and public comment section here at Health Insurance Rate Filings

Content Last Modified on 9/7/2018 3:17:01 PM