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MedAmerica Insurance Company – Individual (SPL-336)


Rate request: 95.6 percent average increase

Decision: Disapproved, limited to a 30% increase

On February 10, 2020, MedAmerica Insurance Company requested an overall average increase of 95.6 percent for individual long-term care policies (SPL-336). The policies were sold in Connecticut from 2004 to 2007 and are no longer being marketed.

There are about 80 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 30% increase for all policyholders on May 5, 2020, phased in over 3 years to comply with state law. The Connecticut and nationwide historical experience has been worse than expected, but the minimum lifetime loss ratio still has to be met.

The new rates would 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