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.

Carriers also must provide a notice that some companies have failed to adequately disclose rate increase information in the past, and an explanation of the consumer’s options in the event of future premium increases.

The Pennsylvania department is also trying to help consumers by publishing a long-term care premium rate guide for consumers.