Pennsylvania’s insurance commissioner Teresa Miller held a public hearing late last week to address the issues regarding long-term care insurance rate hikes.
A number of long-term care insurance carriers—Genworth Life Insurance Company, Unum Life Insurance Company of America, John Hancock Life Insurance Company, and Metropolitan Life Insurance Company—had submitted requests to the agency for a rate increase, which are now up for review.
It was the state insurance department’s intent—in accordance with the Wolf Administration’s consumer education and transparency efforts—to hold a public hearing over the proposed rate increases to help consumers understand what transpires during a rate review.
“I believe it is important for the public to understand how we, as government regulators, review rate requests insurers bring to us,” said Miller. The public needs to know we are closely reviewing information insurance companies give us.”
The hearing began with a detailed description of the department’s actuarial review process and how it ensures the financial stability of carriers by department Bureau of Life, Accident and Health Insurance Director Johanna Fabian-Marks and Deputy Commissioner for Corporate & Financial Regulation Joseph DiMemmo.
The officials then elaborated that whenever a rate increase request is reviewed a number of things are carefully considered, such as the company’s projections for its policyholders’ life expectancies, health, and how likely will a customer cancel a policy. Other points that are factored into the review include the financial impact of such an increase, and other alternative options to limit increases by adjusting benefits. The carrier’s financial stability and ability to pay its customers’ claims are also considered.
Consumers were present for the hearing, both in person and through video conference. They were given opportunities to voice their concerns.
At the end of the hearing, Miller reassured consumers that the department would prioritize their needs and would hold an open review process for all to see.
We’re going to make every effort to keep this process as transparent as possible,” Miller remarked.
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