Long-Term Care Rate Filing - Connecticut Life & Health Guaranty Association (Individual)

Rate request: 69 percent increase
Decision: Approved January 9, 2018

On May 25, 2017, the Connecticut Life & Health Guaranty Association requested an increase of 69 percent for long-term plans that had been issued by American Network Insurance Company (ANIC) from 1998 to 2008.

ANIC was placed into liquidation by a Pennsylvania court. As a result of the liquidation, state guaranty associations – consumer safety nets – are providing coverage for policyholders. There are 531 policyholders in Connecticut with ANIC long-term care plans, which are no longer being marketed.

The Connecticut Life & Health Guaranty Association requested the rate increase, saying it needed to establish premium rates that are reasonable in relation to the benefits provided and the current interest rate environment.

After an actuarial review, the Department determined that the experience of this block of business in both Connecticut and nationwide has deteriorated and will continue to worsen. Without a rate adjustment, the Association is expected to spend more than $1 on claims costs for every premium dollar it receives, far exceeding the 60 percent statutory minimum required by state law. As a result, the Department approved the rate increase request on January 9, 2018.

Policyholders will be offered different benefit options to mitigate the impact of a large premium increase. Under Connecticut law, increases equal to or higher than 20 percent must be phased in over three years or more.

Rate Filing

Final Disposition