On April 16, 2023, the Transamerica Life Insurance Company filed for a 146 percent rate increase on its NEA group series long-term care policies. There are approximately 361 of these policies currently in force in Connecticut. The company is no longer marketing this product.

The company says it is seeking the increase due to claim levels that produce unacceptable lifetime loss ratios exceeding the statutorily required minimum loss ratio. 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.

The company said policyholders will be given the option to offset the increase and lower their premium by reducing their current benefits. Under Connecticut law, long-term care rate increases of 20 percent or higher must be phased in over three years or more.

The proposed rate increase will be implemented following approval and after fulfillment of all statutory and contractual requirements.

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