On April 22, 2022 Bankers Life & Casualty Company requested a level increase of 35 percent for several of its individual long-term care plans (Forms N050, et al). The plans were marketed from 1992 to 2003 and are no longer being marketed. There are approximately 728 policies currently in effect in Connecticut.

The company said it sought the increase because of significantly higher than anticipated future and lifetime loss ratios. The company said that it is driven by higher than expected claim costs, resulting in inadequate premium rates over the lifetime of the policy forms.

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 the 35% increase on June 16, 2022. This decision reflects the Connecticut specific experience has been more unfavorable than nationwide and the significantly lower Connecticut rate level is contributing to this experience difference. The previous approved rate increases have not stabilized the Connecticut experience and both Connecticut specific and nationwide experience remain above anticipated levels.

The company said it would allow policyholders to change their benefits in order mitigate the impact of a higher rate.

Under Connecticut law, rate increases of 20 percent or more must be phased in over three years or more. This 35% increase will be phased in over 3 years with an increase of 10.5% annually.

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