CID: Long-Term Care Rate Filing - MedAmerica Insurance Co. (CT Partnership-Individual & Group)

Long-Term Care Rate Filing - MedAmerica Insurance Co. (CT Partnership-Individual & Group)

Rate Filing Review: 78.8 percent average increase
Decision: Under Review
Public Comment Period: September 8, 2018 to September 28, 2018

On September 4, 2018, MedAmerica Insurance Company requested an average increase of 78.8 percent for CT Parternship individual and group long-term care plans. The plans were sold in Connecticut from 2002 to 2012 and are no longer being marketed.

There are 745 policies currently in effect in Connecticut. These policies have been approved by the Connecticut Partnership for Long-Term Care, a private/public alliance that helps policyholders protect their assets.

The company said in its filing that the increase is needed because of higher than expected claims costs and a longer duration of paying those claims that 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 years.

If approved, the new rates would take effect 60 days after the company notifies its customers.

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

Content Last Modified on 9/7/2018 3:26:07 PM