CID: Long-Term Care Rate Filing - MedAmerica Insurance Company (Individual 1992-2006)

Long-Term Care Rate Filing - MedAmerica Insurance Company (Individual 1992-2006)

Rate Request: 141 percent increase over 3 years

Decision: Under Review

Public Comment Period: January 23 to February 11, 2019

On January 18, 2019, MedAmerica Insurance Company requested an overall increase of 141 percent for individual long-term care plans that provide daily benefits. The plans were sold in Connecticut from 1992 to 2006 and are no longer being marketed.

There are just under 100 policies currently in effect in Connecticut.

The company said the increase is due to “emerging and projected experience running more adverse than previously expected.”

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.

If approved, any increase of 20 percent or more must be phased in over three years to comply with state law. Central States said it would offer its customers options to reduce or change benefits to offset the impact of an increase. The new rates would take effect 60 days after the company has notified its customers.

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

Content Last Modified on 1/22/2019 4:20:03 PM