On October 3, 2022, Massachusetts Mutual Life Insurance Company requested an average increase of 25 percent on a block of business of individual long-term policies (Series 513) which were sold from 2013 to 2019. The range of increase varies from 0% to 30%, where policies with auto inflation would receive a 30% increase and all other policies would receive no increase.

These are no longer being marketed. There are about 387 total policies in force in Connecticut.

The company said in its filing that the increase is needed because the emerging and projected experience on this block of business is running more adversely than previously expected.

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 an Actuarial review, the Department approved the request on March 8, 2023. The Department believes the additional premium increase is warranted based on looking prospectively at future claims versus future premiums at current assumption levels versus the past assumption levels. The current assumption levels appear reasonable.

The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. If approved, the new rate would take effect 60 days after the company has notified its policyholders. Connecticut law requires that any increase 20 percent or higher be phased in over three years or more. The approved increase will be implemented over three years at 9.7% annually for policies with inflation.

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