Brighthouse Life Insurance Company – Individual (LTC4, LC4)
Rate request: 50 percent increase
Decision: Disapproved, limited to 25%
On December 10, 2020 Brighthouse Insurance Company requested an increase of 50 percent on their block of business of Individual Comprehensive and Facility-Only long-term policies, including Partnership policies, which were sold from 1997 to 2001 (LTC4, LC4).
These are no longer being marketed. There are about 2,700 policies in force in Connecticut.
The company said in its filing that the increase is needed due to the fact that experience has been much worse than anticipated in original pricing.
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 Actuarial review, the Department approved a 25% increase on February 18, 2021. This increase will be phased in over three years at 8.6% a year. While the total experience has been significantly worse than originally anticipated, the most recent experience has begun to stabilize.
The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. The new rate would take effect 60 days after the company has notified its policyholders. Connecticut law requires that any increase 20 percent or higher be phased in over three years or more.
Find the filing documents here at Long-Term Care Insurance Rate Filing