Pursuant to House Bill 493, which became effective during the 2017 legislative session, long-term care insurers are required to provide a one-time notice to their insureds advising that information about long-term care rate requests may be found on this web page. Receiving this notice does not necessarily imply that your long-term care insurance company is requesting a rate increase at this time. To determine if your long-term care insurance company is requesting an increase, please look under the "Long-Term Care Hearing Information" and the "Long-Term Care Rate Information" tabs below. To be notified of future rate hearings, rate approvals or any other changes made to this web page, please click "Subscribe to this page" next to the red envelope.
Subscribe to this page
February 12, 2018
Long-Term Care Hearing Scheduled for February 12, 2018Public AgendaFull TranscriptWritten CommentsActuarial MemorandaJohn Hancock
August 28, 2017Long-Term Care Hearing Scheduled for August 28, 2017Public AGENDAFull TranscriptWritten CommentsActuarial Memoranda
May 15, 2017Long-Term Care Hearing Scheduled for May 15, 2017AgendaWritten Comments: Prudential, Myron Miller, Clarke EllisFull TranscriptActuarial MemorandaJohn Hancock
March 6, 2017Long-Term Care Briefing Scheduled for March 6, 2017Public AgendaFull TranscriptWritten Comments
January 9, 2017Long-Term Care Hearing Scheduled for January 9, 2017Long-Term Care Insurance: Basic Pricing and Rate Increase Concepts (Society of Acturary Presentation) January 9, 2017Written Testimony Received as of January 9, 2017Full TranscriptWritten Testimony (ACLI January 23, 2017)Actuarial MemorandaBankers Life
October 27, 2016Long-Term Care Insurance Rate Increase Public Hearing Held October 27, 2016TranscriptWritten Testimony Received as of October 21, 2016Written Testimony Received on or after October 27, 2016Long-Term Care Insurance Rate Review Process - Maryland (Sarah Li, Chief Actuary, presentation)Long-Term Care Insurance: Basic Pricing and Rate Increase Concepts (Society of Actuaries Presentation)
April 28, 2016Long-Term Care Insurance Public Informational Hearing Held April 28, 2016Transcript and Affidavit of CorrectionsWritten Testimony
Approved Rates for 2018
Policy Form Series: NH5092 et al, LTC5092 et al, LTC94, LTC94Q, LTC99, LTC99Q; 15.6% increase -- phased in at 7.5% annually for two years for policies with uncapped inflation coverage. (SERFF: UNUM-131410665).Approved 7/3/2018.
Policy Form Series RR.LTC.(0798), RS.LTC.(1101), RS.LTC.(1007), RS.LTC.(0708), & TT.LTC.(1010), 8.5% overall average rate increase approval (SERFF: NWST-131263159)Approved 6/19/2018
Policy Form Series GR-N050, GR-N100, GR-N105, GR-N160, GR-N165, GR-N240, GR-N250, GR-N270, GR-N280, 187R, 206A, 223G, 226A, 226G & 228R, 9% approval (SERFF: BNLB-131315020)Approved 06/19/2018
Policy Form Series 64028, 8% approval (SERFF: LTCG-131180280)
Proposed Effective Date: These rates will be effective on the next policy anniversary date, following at least a 90 day policyholder notification period.
Proposed Effective Date:This rate increase will apply to policies on their policy anniversary date following at least a 60-day policyholder notification period after approval.
Proposed Effective Date:The rate increase will apply upon approval following an appropriate policyholder notification period.
Proposed Effective Date:The rate increase will apply to policies on their billing anniversary date following a 60-day policyholder notification period.
Proposed Effective Date: These rates will not be effective until after the company has satisfied the required 90 days advance notice to the policyholder and to the insureds.
Approved Rates for 2017
Policy Forms ICC10-LTC-11; 7.5% approval (SERFF MULF-131066170).Approved 12/5/2017.
Policy Forms 80650 1/97 MD, 80880 NTQ 1/98 MD; 32.25% Policy Forms 80650 1/97 MD, 80880 NTQ 1/98 MD; 32.25% increase phased-in at 15% annually over two years (SERFF HUMA-130807445)Approved 10/11/17
Insurance Regulations addressing Long-Term Care Insurance
Q: What factors do insurance companies consider to determine the premium rates?A: When insurance companies initially develop rates for long-term care insurance premiums, the main actuarial assumptions taken into account include lapse assumptions, mortality assumptions, morbidity assumptions and interest rate assumptions. Additionally, an insurance company may offer you discounts when you are initially purchasing a long-term care insurance policy, for being a very healthy applicant (i.e. passing more rigorous underwriting criteria), being married, or living with someone. Finally, long-term care insurance is generally offered on an issue-age basis, meaning the younger you are when you buy the policy, , the lower the insurance premium.
Q: Is there a maximum allowed annual premium increase for my long-term care insurance?A: Yes. COMAR 31.14.01.04(A)(5) provides that except under certain exceptional circumstances, a long-term care insurer cannot raise your premium by more than 15% in a 12-month period. Furthermore, COMAR 31.14.02.06(B)(2)(d) states that, except under limited circumstances, your renewal premium rate cannot be greater than new business premium rates, except for differences attributable to benefits.
Q: Do I have any options other than accepting the premium rate increase?A: Yes. If you would not like to accept the full premium rate increase, COMAR 31.14.01.36 requires every long-term care insurance policy and certificate to include a provision allowing the policyholder to reduce coverage and lower the policy premium in at least one of the following ways:
Additionally, a long-term care insurer may voluntarily offer you other ways to reduce the impact of a premium rate increase by including options in the policy to lower the inflation protection rate, or by providing an option to reduce the inflation protection from compound to simple inflation. Before you make any decision involving reduction of benefits, you should understand the long term impact of doing so.
Q: What does the MIA do when it receives a request from an insurance company to change its long-term care insurance premium rates?
200 St. Paul Place, Suite 2700, Baltimore, MD 21202
410-468-2000 | 1-800-492-6116 (toll free) | 1-800-735-2258 (TTY)