MedAmerica Insurance Company – Individual (SPL2)
Rate request: 27.62% average percent increase
On August 3, 2020, MedAmerica Insurance Company requested an average increase of 27.6 percent for individual long-term care plans. The plans were sold in Connecticut from 2007 to 2014 and are no longer being marketed.
There are 184 policies currently in effect in Connecticut.
The company said in its filing that the increase is needed because emerging and projected experience is 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 27.6% increase across all policyholders on November 20, 2020. Both the Connecticut and nationwide experience have been significantly worse than anticipated levels. The increase will be phased in over three years at 9.2% each of three years.
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 years.
The new rates will take effect 60 days after the company notifies its customers.
Find the filing documents here at Long-Term Care Insurance Rate Filing