MedAmerica Insurance Company – Group (1999 to 2001)
Rate request: 71.6 percent increase
Decision: Disapproved, limited to a 25% increase
On June 25, 2019, MedAmerica Insurance Company requested an overall increase of 71.6 percent for group long-term care plans. The plans were sold in Connecticut from 1999 to 2001 and are no longer being marketed.
There are about 110 policies currently in effect in Connecticut.
The company said the increase is due to emerging and projected experience running more adverse than previously expected.
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, it was determined that both the Connecticut and nationwide experience is worse than anticipated. Both nationwide and Connecticut specific blocks still need to meet a minimum 65% loss ratio over the lifetime of the policy forms. A 25% increase was approved on October 23, 2019, phased in over three years.
The new rates will take effect 60 days after the company has notified its customers.
Find the filing documents here at Long-Term Care Insurance Rate Filing