Pennsylvania Completes LTC Rate Regulation

NU Online News Service, March 15, 4:25 p.m. – The Pennsylvania Insurance Department has completed its version of the long-term care insurance price stability regulation proposed by the National Association of Insurance Commissioners, Kansas City, Mo., Pennsylvania officials say.

The NAIC approved the regulation as a result of reports of some carriers offering unrealistically low initial prices, then demanding big rate increases for in-force policies. In some cases, the first rate increases scared away the healthier insureds, leading to an ever-escalating “spiral” of rate increases, officials say.

Carriers selling long-term care coverage in Pennsylvania now must provide the premium rate or rate schedules that apply to the applicant; a 10-year history of premium rate increases on the applicable policy or similar policies in Pennsylvania and other states; and a notice that the policy might be subject to rate increases in the future.