Connecticut Insurance Department's Long-Term Care Rate Review Process Overview

The Connecticut Insurance Department’s (CID) actuarial staff reviews each insurance company’s Long-Term Care (LTC) rate increase request thoroughly and carefully.

CID Review of LTC Rate Increase Requests

As part of a LTC rate increase request, insurance companies are required to provide the CID with detailed accounting of the premiums collected for each policy series as well as an analysis of the claims incurred since the inception of the series. The claim review is conducted on an aggregate basis for all Connecticut policyholders holding the same policy series.

The CID’s LTC actuarial rate review considers historical experience, previous approved rate increases, future projections with and without the proposed rate increase, where Connecticut stands versus other states with cumulative increases previously approved, the amount of increase generated by the Prospective Present Value Method, current and previous company actuarial assumptions and other actuarial considerations.

It is important to note that the CID’s rate filing reviews are conducted within the framework established by the Connecticut insurance statutes and regulations applicable to individual LTC insurance rates. In addition, the CID’s actuarial reviews of LTC rate increases requests comply with all Actuarial Standards Board Practices.

The CID Actuaries monitor and participate in National Association of Insurance Commissioner (NAIC) meetings related to Long-Term Care, which include updates on emerging issues and practices. More information is available online, at the Long-Term Care Insurance (EX) Task Force (naic.org).

Treatment of Certain Rate Increases

Any rate increase approved by the CID that is 20% or higher must be spread out over at least three years. In addition, effective with filings submitted January 1, 2022 and later, no additional rate increases are allowed during the spread-out period. Both of these items are required under the Connecticut insurance statutes. The CID Actuaries monitor and compel compliance with these requirements.

Notice to Policyholders by Insurers of Rate Increases

Insurance companies are required to provide to their policyholder’s premium increase notices that detail alternative plan design information with options to keep their premiums at approximately the same amount. The Department Bulletin HC-130 (issued 12/21/2021) outlines the minimum set of benefit options to be offered by an insurance company.

Rate Increase Request Information is Publicly Available

All initial and final long-term care insurance rate filing summaries are available to the public on the CID website upon receipt of a rate increase request. The entire rate filing, all supporting material and related correspondence are available on the CID website when the final rate decision is made.

Consumers are urged to contact the Department should they have questions or concerns with their insurance policy by visiting ct.gov/cid or by calling 1-800-203-3447 or (860) 297-3900.