MedAmerica Insurance Company – Individual (1992-2006)
Rate request: 141 percent increase over 3 years
Decision: Disapproved, limited to a 40% increase
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.
After an actuarial review, the Department determined that while Connecticut experience has been worse than expected, a significant amount of the early experience is estimated and the increase request is coming with a small number of policyholders and future premium payments remaining. The large rate increases requested would have a minimal impact on the lifetime loss ratios.
The new rates would take effect 60 days after the company has notified its customers.
Find the filing documents here at Long-Term Care Insurance Rate Filing