CID: Long-Term Care Rate Filing - Bankers Life & Casualty Co. (Individual: 2002-2005)

Long-Term Care Rate Filing - Bankers Life & Casualty Co. (Individual: 2002-2005)

Rate Request: 35 percent increase
Decision: Under Review
Public Comment Period: November 2 to November 22, 2018

On October 31, 2018 Bankers Life & Casualty Co. requested an average increase of 35 percent for several of its individual long-term care plans. The plans were marketed from 2002 to 2005 and are no longer being marketed. There are approximately 300 policies currently in effect in Connecticut.

The company said it sought the increase because of significantly higher than anticipated future and lifetime loss ratios. The company said that it is the result higher than expected claim costs, resulting in inadequate premium rates over the lifetime of the policy forms.

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 30 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.

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

Content Last Modified on 11/1/2018 5:57:06 PM