On April 16, 2023, the Transamerica Life Insurance Company filed for a 70 percent rate increase on a group of individual long-term care policies (TransCare, TransGeneration and “Legacy”). There are 7,034 of these policies currently in force in Connecticut. The company is no longer marketing these policies.

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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