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Long-Term Care Public Rate Hearings


The Florida Office of Insurance Regulation (Office) conducted two public hearings on Friday, August 12, 2016, related to the proposed statewide average rate increases for long-term care insurance products associated with Metropolitan Life Insurance Company (“MetLife”) and Unum Life Insurance Company of America (“Unum”). Both hearings were held at the Kovens Conference Center, Florida International University (Biscayne Bay Campus), in North Miami, Florida.

On January 12, the Office made a rate filing decision on the long-term care products for MetLife and Unum. These decisions reflect agreements by MetLife and Unum to give their policyholders guaranteed certainty about the cost of their long-term care insurance for the next 10 years. Rates approved by the Office will be phased-in by the insurance companies incrementally over an initial three-year period, with average monthly premium increases ranging from $4 to $44 for MetLife and $5 to $55 for Unum. During the next seven year period, rates will be guaranteed, with no additional rate changes for affected policyholders. In addition to the rate guarantee, policyholders will also be given a range of benefit options to choose from in mitigating the rate increase. These include allowing the policyholder to accept a reduction or removal of the inflation factor, reduction in the daily benefit provided for in the policy or an increased elimination period. It also includes a non-forfeiture provision that allows policyholders who do not wish to make future premium payments to accept a paid-up policy with maximum benefits equal to the premiums they have already paid for in the policy.

Long-term care insurance is purchased in advance of a person’s disability or infirmity, which leaves a person unable to perform some or all of the Activities of Daily Living (walking, eating, dressing, bathroom needs, or mobility). This type of insurance covers the cost of day-to-day care and treatment at home, or in an assisted-care living facility or in a full-time nursing facility, and includes a wide range of medical, personal, and social services. Long-term care insurance policies typically vary in coverage, but will normally pay a fixed-dollar amount or the actual costs of care up to a specified dollar amount, for a certain length of time and kind of care.

Nationally, long-term care insurance premiums have been rising dramatically for more than a decade. The premium increases are driven by incorrect assumptions regarding how many people would decide to cancel their coverage, the number of policyholders with cognitive issues such as Alzheimer’s, and longer life expectancy. The Office closely monitors the financial health of the long-term care insurance market and strives to strike a balance between financial stability of the insurers and the cost to consumers.

For additional resources and information on long-term care insurance, visit the Office’s webpage at: http://www.floir.com/sections/landh/ltc/default.aspx

Hearing Details

Hearing Testimony:


Public Comments/Testimony:


Consumers and other interested parties were able to submit comments for the two public rate hearings. The record for public comment closed at 5:00 p.m. on 8/23/2016 for both hearings.

Under Florida law, written communications to the Office are public record; this would include email addresses and phone numbers. They are subject to public disclosure, including being available to the public and media. For more information, visit the Office of Insurance Regulation's Internet Privacy Policy.

Metropolitan Life Insurance Company (“MetLife”) Public Rate Hearing


The MetLife group is based in New York, New York and is the largest life insurer in Florida. MetLife is one of the largest long-term care insurers in Florida with approximately 22,000 policyholders. As of year end 2015, MetLife had a net income of $3.70 billion and surplus of $14.48 billion. The purpose of the public hearing was to discuss MetLife’s proposed statewide average rate increases for its business in the following long-term care policy form series: LTC97, VIP1, VIP2 (ERA1), VIP2 (Era2), Group and TIAA. The rate increases for these products range from 20.09% to 95.44%. For a list detailing the number of policyholders by county for MetLife, click here.

For MetLife policyholders, the individual monthly premium impacts associated with the rate changes are listed below:

MetLife (Range $4 to $44)

Long-term Care Insurance Policy Form Series Products File Log #:16-09734 Average Monthly Premium Increase Year 1 Average Monthly Premium Increase Year 2 Average Monthly Premium Increase Year 3 Average Monthly Premium Increase Year 4 - 10 Total Monthly Premium Increase Over 10 Years
Series LTC97
1LTC-97-FL
$25 $29 $35 $0 $89
Series VIP1
LTC-IDEAL-FL, LTC-PREMIER-FL, LTC-VALUE-FL
$31 $37 $44 $0 $112
Series VIP2 (Era 1)
LTC-IDEAL-FL
$30 $35 $40 $0 $105
Series VIP2 (Era 2)
LTC-VAL-FL, LTC2-PREM-FL
$19 $21 $23 $0 $63
Series Group
GPNP99-LTC
$4 $5 $5 $0 $14
Series TIAA
LTC-FL.02 Ed. 11-91, LTC-E-FL.02 Ed. 11-91, LTC-FL.02 Ed. 2-98, LTC-E-FL.02 Ed. 2-98, LTC.03 (FL)
$25 $28 $32 $0 $85

Proposed Rate Level Effects:

The proposed rate filing changes can be accessed via the I-File Forms & Rates Filing Search system by entering either the file log number or the name of the company in the “Quick Search” tab. Scroll down to the bottom of the results page for the most recent filing information.

Source: Florida rate filing 16-09734

Long-term Care Insurance Policy Form Series Products File Log #:16-09734 Average Statewide Rate Change Requested # of Covered Lives in Florida Order/Exhibits
Series LTC97 +77.23% 929 Consent Order
(includes exhibit on approved rate increases)
Series VIP1 +95.44% 4,229  
Series VIP2 (Era 1) +59.51% 3,015  
Series VIP2 (Era 2) +34.00% 529  
Series Group +20.09% 8,156  
Series TIAA +54.72% 906  

Unum Life Insurance Company of America (“Unum”) Public Rate Hearing


The Unum Group is the largest provider of disability insurance products in the U.S. and one of the largest long-term care insurers in Florida with approximately 46,000 policyholders. As of year end 2015 Unum had a net income of $203.5 million and surplus of $1.56 billion. The purpose of the public hearing was to discuss Unum’s proposed statewide average rate increases for certain policies of its comprehensive long-term care insurance coverage. The rate increases for these products range from 0% to 114%. For a list detailing the number of policyholders by county for Unum, click here.

For Unum policyholders, the individual monthly premium impacts associated with the rate changes are listed below:

Unum (Range of $5 to $55)

*A premium increase was not requested for policy form numbers LTC5091, LTC5191, LTC5291, LTC5391, LTC5491, LTC5591 (Individual Long-Term Care Indemnity Policy) and GLTC04, RGLTCO4 (Group Long-Term Care Indemnity Policy, Group Long-Term Care Reimbursement Policy) within these filings and therefore the schedule above does not apply to these policies.

Long-term Care Insurance Policy Form Series Products File Log #: 16-08161 and 16-15455 Average Monthly Premium Increase Year 1 Average Monthly Premium Increase Year 2 Average Monthly Premium Increase Year 3 Average Monthly Premium Increase Year 4 - 10 Total Monthly Premium Increase Over 10 Years
B.LTC, TQB.LTC $5 $6 $7 $0 $18
NH5092, NH5192, NH5292, NH5392, NH5492, NH5592 $35 $43 $55 $0 $133
LTC94, LTC94Q $31 $39 $50 $0 $120
RLTCP03, LTCP03, LTCT03

(These three forms were issued by Provident Life & Accident Insurance Company)
$24 $30 $37 $0 $91

Proposed Rate Level Effects:

The proposed rate filing changes can be accessed via the I-File Forms & Rates Filing Search system by entering either the file log number or the name of the company in the “Quick Search” tab. Scroll down to the bottom of the results page for the most recent filing information.

Source: Florida rate filing 16-08161 and 16-15455

Long-term Care Insurance Policy Form Series Products File Log #: 16-08161 and 16-15455 Average Statewide Rate Change Requested # of Covered Lives in Florida Order/Exhibit
B.LTC, TQB.LTC
(Group Long-Term Care Indemnity Policy)
+75 23,446 Consent Order
(includes exhibit on approved rate increases)
LTC5091, LTC5191, LTC5291, LTC5391, LTC5491, LTC5591
(Individual Long-Term Care Indemnity Policy)
None 70  
NH5092, NH5192, NH5292, NH5392, NH5492, NH5592
(Individual Long-Term Care Indemnity Policy)
+114% for Compound Uncapped Inflation

76% for Simple Uncapped Inflation

No Rate Increase for All Other Insureds
186  
LTC94, LTC94Q
(Individual Long-Term Care Indemnity Policy)
+114% for Compound Uncapped Inflation

76% for Simple Uncapped Inflation

No Rate Increase for All Other Insureds
4,455  
RLTCP03, LTCP03, LTCT03
(Issued by Provident Life & Accident Insurance Company)

(Individual Long-Term Care with Professional Home and Community Care Benefit (Reimbursement), Individual Long-Term Care with Professional Home and Community Care Benefit (Indemnity), Individual Long-Term Care with Total Choice Home Care Benefit (Indemnity)
+90% for Compound Uncapped Inflation

58% for Simple Uncapped Inflation

No Rate Increase for All Other Insureds
4,909 Consent Order
(includes exhibit on approved rate increases)
GLTC04, RGLTC04
(Group Long-Term Care Indemnity Policy, Group Long-Term Care Reimbursement Policy)
None 12,600  

Contact Information:

Communications Office
(850) 413-2515
Press@floir.com