Long-Term Care Rate Filing - Mutual of Omaha Insurance Company (Individual 1997-2004)
On October 24, 2018, Mutual Omaha Insurance Company requested a 56 percent increase on a block of business of individual long-term policies sold from 1997 to 2004 and are no longer being marketed. There are approximately 280 policies in force in Connecticut.
The company said in its filing that the increase is needed because “significantly higher anticipated future and lifetime loss ratios,” due to higher lifetime benefit claim costs.
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.
If approved, the new rates would take effect February 1, 2019 and thereafter. The company noted it would offer its customers options to reduce or change benefits to offset the impact of an increase. Under Connecticut law, increases of 20 percent or higher must be phased in over three or more.