Tallahassee, Fla. – Today, Florida Insurance Commissioner David Altmaier announced the Office of Insurance Regulation (Office) will host two public hearings on Friday, August 12, 2016, to discuss significant long-term care insurance rate increases being proposed by Metropolitan Life Insurance Company (“Metlife”) and Unum Life Insurance Company of America (“Unum”). The majority of policyholders impacted by the proposed rate increases reside in the South Florida area of Broward or Miami-Dade counties, but Floridians from all parts of the state are included. For a list detailing the number of policyholders by county for each company, click here for MetLife and here for Unum.
Metlife is the largest life insurance company in Florida and one of the largest long-term care insurance companies in Florida. As of year-end 2015, Metlife had a net income of $3.7 billion and surplus of $14.48 billion. It is proposing long-term care insurance rate increases ranging from 20% up to 95%. These increases are expected to affect approximately 22,796 Florida policyholders. If this rate filing is approved as requested, the average annual premium would change from $1,593 to $2,580.
Unum is the largest provider of disability insurance products in the United States and also one of the largest long-term care insurance companies in Florida. As of year-end 2015, Unum had a net income of $203.5 million and a surplus of $1.56 billion. It is proposing rate increases ranging from 0% up to 114%. These increases are expected to affect approximately 45,666 Florida policyholders. If this rate filing is approved as requested, the average annual premium would change from $581 to $862.
- For a list detailing the projected individual premium impact by policy form of Metlife or Unum policyholders, click here.
Both public hearings will be overseen by Commissioner Altmaier and are scheduled for Friday, August 12, 2016 at the Kovens Conference Center (Room 114) of the Florida International University’s Biscayne Bay Campus located at 3000 NE 151st Street in North Miami, Florida. Metlife’s public hearing begins at 1:00 p.m. (EST) with Unum’s to follow at a start time of 4:00 p.m. (EST). At the hearings, each company will have an opportunity to present evidence in support of the proposed rate increases and respond to questions and comments from the Office. In addition, consumers and other interested parties are encouraged to attend and will also have an opportunity to provide public comment. For those who are unable to attend, public comments may be directed to an email address assigned for each company’s public hearing: MetLife’s email is MetLifeLTCHearing@floir.com and Unum’s email is UnumLTCHearing@floir.com. Public comments will be accepted until 5:00 p.m. (EST) on August 23, 2016 and posted to the Office’s “Long-Term Care Insurance Public Rate Hearings” webpage.
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). It covers the cost of day-to-day care and treatment at home, in an assisted-care living facility or in a full-time nursing facility, and includes a wide range of medical, personal and social services. These policies 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.
To learn more about long-term care insurance, access the Office’s “Long-Term Care Insurance” webpage, the Department of Financial Services “Long-Term Care Insurance” Consumer Guide, or the National Association of Insurance Commissioner’s (NAIC) “Long-Term Care Insurance Fact Sheet” Consumer Alert.