Long-Term Care Rate Filing - MedAmerica Insurance Co. (CT Partnership-Individual & Group)
On September 4, 2018, MedAmerica Insurance Company requested an average increase of 78.8 percent for CT Parternship individual and group long-term care plans. The plans were sold in Connecticut from 2002 to 2012 and are no longer being marketed.
There are 745 policies currently in effect in Connecticut. These policies have been approved by the Connecticut Partnership for Long-Term Care, a private/public alliance that helps policyholders protect their assets.
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 both the individual and group blocks of business still need to meet the Connecticut lifetime statutory minimum loss ratio of 60 and 65 percent, respectively. Neither has met that minimum yet. As a result, the Department disapproved the initial rate increase requests and limited it a 15 percent increase for the individual policies and 10 percent for group on October 1, 2018.
The new rates will take effect 60 days after the company notifies its customers.