On April 29, 2022, Metropolitan Life Insurance Company requested an increase of 16.59 percent on AARP group long-term care policies that offer reimbursement for care delivered in nursing homes, assisted living, at home and for respite services.

There are approximately 79 policies in force in Connecticut. They were issued in Connecticut from 2005 to 2006 and are no longer being marketed.

The company said the increase is needed because of a higher demand for benefits over a longer period of time than originally projected when the policies were initially priced.

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 rate increase on October 28, 2022. While the experience has been running close to expected in total-to-date, it has been deteriorating and expected to exceed expectations and minimum lifetime loss ratios in the future.

The company also said it would offer its customers options to reduce or change benefits to offset the impact of an increase. The new rates would take effect at least 60 days after the company notifies policyholders.

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