On October 06, 2021 Bankers Life & Casualty Co. requested an average cumulative increase of 52.1 percent for several of its individual long-term care plans. The plans were marketed from 2005 to 2009 and are no longer being marketed. There are approximately 102 policies currently in effect in Connecticut.

The company said it sought the increase because of higher than anticipated future and lifetime loss ratios. The company said that it is the result lower than expected mortality experience, 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 a cumulative 33.1% increase on March 14, 2022, to be implemented at 10% a year for three years. Recent experience has deteriorated, and Connecticut rate level is lower than the nationwide level, but the block still needs to meet the 60% minimum lifetime loss ratio.

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

The new rates will be implemented after the company notifies its customers according to Connecticut requirements. Under Connecticut law, rate increases of 20 percent or more must be phased in over three years or more.

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