On November 24, 2021 Prudential Insurance Company of America requested an average increase of 68.6 percent on a block of business of individual long-term policies which were sold from 1999 to 2012. The range of increase is 13.2% to 151.9%.

These are no longer being marketed. There are about 1150 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 has approved a reduced 40% rate increase on ILTC1, a reduced 20% increase on LTC2 and disapproved any change to rates for ILTC3 and ILTC3R on March 28, 2022. For ILTC1 and LTC2, the historical experience was favorable but the lifetime projected loss ratios continue to be well over any required state minimums and the Connecticut rate levels are significantly lower than nationwide. For ILTC3 and LTC3R, the historical experience was favorable and the Connecticut rate levels are higher than nationwide.

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