On November 24, 2021, Prudential Insurance Company of America requested an average increase of 25.6 percent on a block of business of group long-term policies (GLTC2 and GLTC3 series) which were sold starting in 1998. The increase varies by product with a range of 25.2% to 58.7%.

These are no longer being marketed. There are about 3586 policies in force in Connecticut.

The company said in its filing that the increase is needed to help ensure that future premiums, in combination with existing reserves, will be adequate to fund anticipated claims. Some of Prudential’s pricing assumptions for these series of forms, although based on the best information then available, were not consistent with emerging experience.

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 35% rate increase for GTLC2 and a 10% increase for GLTC3 on March 28, 2022. These increases take into account that the inception-to-date experience has been better than anticipated, both nationally and in Connecticut, and will still need to meet the 65% lifetime loss ratio. They also reflect the lifetime loss ratio projections are in excess of 100% and the Connecticut rate level is lower than nationwide.

The company said its policyholders will have options to change or reduce benefits in order to mitigate the impact of an increase. The new rates 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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