On July 8, 2022 Berkshire Life Insurance Company of America requested an average increase of 17% percent for several of its individual long-term care plans. The increase requested is either 15% or 20% depending on policy form. The plans were marketed from 2004 to 2012 and are no longer being marketed. There are approximately 107 policies currently in effect in Connecticut.

The company said it sought the increase because projected experience is now worse that what original pricing assumptions were projecting. This is resulting in higher than expected claims costs and loss ratios. The current premiums are inadequate to meet those costs over the lifetime of the policies.

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 increases on January 10, 2023. Both forms had projected lifetime loss ratios in excess of minimums, the Connecticut rate level was low relative to nationwide levels and an analysis of projected claim levels over projected premium at current levels supported to requested premium increases.

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 60 days after the company notifies its customers. Under Connecticut law, rate increases of 20 percent or more must be phased in over three years or more. Policy form BG01P(01/09)-CT has a 20% increase and will be spread out over three years at an annual rate of 6.7%.

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