Long-Term Care Rate Filing - Massachusetts Mutual Life Insurance Company (Individual)

Rate request: 77 percent average increase
Decision: Disapproved, limited to a 40 percent increase on August 22, 2018

On May 24, 2018, Massachusetts Mutual Life Insurance Co. requested an average increase of 77 percent for individual long-term care plans. The plans were sold in Connecticut from 2000 to 2013 and are no longer being marketed.

There are approximately 1,000 policies currently in effect in Connecticut.

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.

After an actuarial review, the Department determined that the experience on the company’s Connecticut block of business has significantly deteriorated over the past two years while the national experience is slightly better than expected. As a result, the Department disapproved the initial rate increase request and instead capped the increase at 40 percent on August 22, 2018. The increase must be phased in over three years per state law to mitigate the impact on policyholders.

The company said would offer its customers options to reduce or change benefits to offset the impact of an increase.

Find the filing documents here at Long-Term Care Insurance Rate Filing