On November 29, 2021, John Alden Life Insurance Company requested a cumulative increase of 72.8 percent on a block of business of individual long-term care policies. They were sold from 1994 to 2000 and are no longer being marketed. There are about 52 policies in force in Connecticut.

The company said in its filing that the increase is needed due to significantly higher anticipated future and lifetime loss ratios.

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 33.1% cumulative rate increase on March 18, 2022, to be implemented at 10% a year for three years. The Connecticut experience is worse than anticipated and the Connecticut rate level is significantly less than nationwide rates, but the Connecticut historical experience continues to be better than the nationwide levels.

The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. The new rate will take effect after the company has notified its policyholders, according to the contractual and regulatory provisions. Connecticut law requires that any increase 20 percent or higher be phased in over three years or more.

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