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MedAmerica Insurance Company – Group (2002 to 2007)


Rate request: 128.1 percent average increase

Decision: Disapproved, limited to a 10% increase

On February 10, 2020, MedAmerica Insurance Company requested an overall average increase of 128.1 percent for a block of group long-term care plans (Series 11). The plans were sold in Connecticut from 2002 to 2007 and are no longer being marketed.

There are about 170 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 Actuarial review, the Department approved a 10% increase on April 28, 2020. While not fully credible, the Connecticut experience has been worse than anticipated but still needs to meet the 65% minimum loss ratio over the lifetime of the block.

The new rates will take effect 60 days after the company has notified its customers.

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