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
- Date: Friday, August 12, 2016
- Time: 1:00 p.m. (EST)
- Place: Kovens Conference Center, Room 114, Florida International University, Biscayne Bay Campus, 3000 NE 151st Street, North Miami, FL 33162
- Hearing Notices - MetLife; Unum
- Press Release - July 13, 2016
- Press Advisory - August 9, 2016
- Press Release - January 12, 2017
- Agendas - MetLife; Unum
- Videos - MetLife;
Unum
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
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