MedAmerica Insurance Company – Individual Partnership (2012 to 2016)
Rate request: 22.0 percent average increase
Decision: Reduced, limited to a 10% increase on inflation policies
On April 23, 2020, MedAmerica Insurance Company requested an overall average increase of 22.0 percent for individual Partnership long-term care policies. The policies were sold in Connecticut from 2012 to 2016 and are no longer being marketed.
There are about 40 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 policies with inflation protection on June 23, 2020. While Connecticut experience was not credible, nationwide experience was projecting a lifetime loss ratio over anticipated levels for inflation policies.
The new rates will take effect 60 days after the company notifies policyholders.
Find the filing documents here at Long-Term Care Insurance Rate Filing