On September 24, 2021, United of Omaha Life Insurance Company requested an average 96.1% increase on a block of business of individual long-term policies sold from 2006 to 2012 and are no longer being marketed. The increase ranges from 15.5% to 295.5%. There are approximately 168 policies in force in Connecticut.

The company said in its filing that the increase is needed because of higher anticipated future and lifetime loss ratios, due to insureds keeping their policies longer and longer claim continuance.

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, on February 18, 2022, a reduced amount that will be implemented as an equal annual amount for three-four years. The reduced phase-in amounts vary from 16.3%-24.6%. This disposition was consistent with recommendations made by the NAIC Multi-State Actuarial Long-Term Care Rate Review Team, which reviewed this filing. Future projections, based on reasonable assumptions, would have resulted in lifetime loss ratios significantly above statutory minimums.

The new rates would take effect after applicable policyholder notification. The company noted it would offer its customers options to reduce or change benefits to offset the impact of an increase. Under Connecticut law, increases of 20 percent or higher must be phased in over three or more.

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