MedAmerica Insurance Company is seeking permission to increase long-term care insurance (LTCI) rates for some Connecticut insureds by an average of 39 percent.
The company, a unit of Lifetime Healthcare Companies Inc., plans to increase rates for holders of 572 individual policies still in force in Connecticut and consumers insured by 233 group policies.
MedAmerica sold the individual policies from 2003 through 2010 and no longer sells those policies in Connecticut.
The company sold the group coverage from 2002 through 2007 and has also stopped selling the group coverage.
The company says the interest rates it is getting are much lower than it originally anticipated and the expected benefit periods are now considerably longer that it assumed when it priced the policies.
The average annual premium for the individual policies is now $2,525. The proposed rate increase would increase the annual premium to $3,510.
For the group coverage, the average annualized premium would increase to $1,443, from $1,038.
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