On July 30, 2021 John Hancock Life Insurance Company requested an average increase of 25.5-83.2 percent for several of its individual long-term care plans (Advantage, Gold Policy and Custom Care Series). The plans were marketed from 1993 to 2004 and are no longer being marketed. There are approximately 3,060 policies currently in effect in Connecticut.

The company said it sought the increase because they anticipate having to pay more claims in the future than previously expected. This filing request is for the remaining increase asked for but not granted in the last rate increase filing in 2020.

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 disapproved the proposed rate increases on these blocks (Advantage, Gold and Custom Care) on February 23, 2022. While inception-to-date experience is unfavorable, recent experience has improved and the blocks appear to be stabilizing. In addition, the Connecticut rate level is higher than nationwide for these groups and a recent significant approved rate increase is not yet reflected in experience.

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