As long-term care insurance premiums head to possibly being five or six times higher than what they were in the 1970s, insurance regulators are seeking to develop a multi-state board to standardize rate increases, Think Advisor reports.
“The regulators are looking at proposals that show what would happen if the new rate increase requested by an insurer and the insurer’s previous rate increases add up to 400%, 600% or even 1,000%,” according to the outlet.
The Long-Term Care Actuarial Working Group, an arm of the National Association of Insurance Commissioners, is working on a one-size-fits-all solution where one team could review long-term care insurance rate increase requests for different states. NAIC says it provides expertise, data and analysis to help insurance commissioners regulate the industry and protect consumers.
“One question is how a multi-state review team should proceed if an insurer will end up charging rates today that are many times higher than the original rates,” Thank Advisor said.
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