Insurance regulators in Massachusetts want to require insurers to give more information before they increase long-term care insurance (LTCI) prices but have not put a cap on increases. Officials at the state’s Division of Insurance have released draft LTCI regulations and explained their proposal in a new LTCI report.
Officials say they considered a proposal to limit LTCI increases to no more than 10 percent per year.
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The division rejected that proposal, because it feared some consumers that had to spread increases over several years would end up seeking bigger increases than they would have sought if they could have implemented one big increase. The division also rejected a proposal to require all new LTCI policies to offer at least one policy with the premiums guaranteed throughout the policy’s lifetime, and to create a guaranty fund that would support the development of a guaranteed-price product.