On August 5, 2021 John Hancock Life Insurance Company requested an average increase of 18.3 and 24.1 percent for several of its individual long-term care plans (Custom Care II Series). The plans were marketed from 2004 to 2010 and are no longer being marketed. There are approximately 3,207 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 for these blocks and limited the increases to 10%-15%. While inception-to-date experience is favorable, recent experience has deteriorated. In addition, the Connecticut rate level is lower than nationwide for these groups, but the recent approved rate increase is not yet reflected in experience.

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.

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