Why insurance premiums have gone up so much in recent years
Long-term care insurance is fairly new and early policies were underpriced. Most insurers didn't expect to pay so much for claims and have so many people cancel their coverage.
Insurers have to change premiums to make sure they have enough money to pay for each plan's claims. If they don't raise rates, they may have trouble paying claims.
If you're thinking about buying insurance, ask about the insurer's past premium increases for all long-term care plans, not just the one you're considering.
How we review and approve rate increases
- Under Washington state law, insurers must ask us to approve rate increases for long-term care.
- Insurers must include documents that show why they need to increase rates.
- We make sure rate increases for long-term care are necessary and comply with Washington state law.
- If there's a good reason for a rate increase and it complies with state law, we can't deny it.
What to do if you can't afford a rate increase
Depending on the amount of the increase, you may have several options:
- Reduce your daily benefits.
- Reduce how long you receive benefits. For example, two years instead of five.
- Increase the time you need to wait before getting benefits (also called the elimination period).
- Reduce the amount of your optional protection from inflation.
- Choose the contingent non-forfeiture option. This lets you keep your coverage and stop paying premiums. Your insurer will provide benefits for long-term care services your insurance covers. These are usually equal to the premiums you've paid minus any claims paid out.