69O-157.302: Facility Only Rates
69O-157.303: Home Health Care Only Rates
69O-157.304: Comprehensive Only Rates
PURPOSE AND EFFECT: To establish a framework for evaluating rate increases for long term care insurance, and to ensure that the rate increases are not excessive.
SUMMARY: Section 627.9407(7)(c), Florida Statutes, provides that rates charged to an insured for renewal of an existing long term care insurance policy may not exceed the price the insurer charges for newly issued polices. The problem this statute addresses relates to “closed blocks” of business. A closed block of business occurs when a particular approved policy is no longer being sold to new customers. There will be a group of insureds who have the insurance, and they will continue to be renewed, but no new customers will be sold that policy. This statute protects the insureds in that closed block by precluding an insurer from having higher renewal rates than its rates for new business. This new rule implements this statute by defining terms used in the statute and explaining how calculations are to be done so the insurer can be sure it is in compliance with the statute.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 627.9408(1) FS.
LAW IMPLEMENTED: 627.031(1)(a), 627.062, 627.9407(7) FS.
IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):
DATE AND TIME: November 19, 2008, 9:30 a.m.
PLACE: 142 Larson Building, 200 East Gaines Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Gerry Smith, L&H Product Review, Office of Insurance Regulation, E-mail gerry.smith@fldfs.com. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Gerry Smith, L&H Product Review, Office of Insurance Regulation, E-mail gerry.smith@fldfs.com
THE FULL TEXT OF THE PROPOSED RULE IS:
69O-157.302 Facility Only Rates.
(1) The footnote following Section 627.9407, F.S., states that Section 11, Ch. 2006-254, L.O.F., provides that “[t]his act shall apply to long-term care insurance policies issued or renewed on or after July 1, 2006. For any long-term care insurance policy issued prior to July 1, 2006, the provisions of [Section 627.94076, F.S.] shall apply to such policy only upon renewal of such policy on or after July 1, 2008, and the policy shall so provide by endorsement to the policy.”
(2) The following maximum new business rates are effective for 2009 2006 rate increase filings and for 2010 2007 rate filings until new rates are published: These annual rates are appropriate for:
(a) Tax qualified policies;
(b) A benefit of $100/day;
(c) An elimination period of 90 days.
(d) Policies offering Restoration of Benefits, and
(e) Sales in Hillsborough County
(3)(a) Facility Only Rates:
Issue Age |
3-Yr Benefit Period |
5-Yr. Benefit Period |
Unlimited Benefit Period |
|
30 |
$284.03 |
$350.92 |
$459.40 |
|
31 |
$287.49 |
$356.69 |
$468.20 |
|
32 |
$291.06 |
$362.46 |
$477.10 |
|
33 |
$294.63 |
$368.43 |
$486.30 |
|
34 |
$298.31 |
$374.41 |
$495.60 |
|
35 |
$301.98 |
$380.48 |
$505.10 |
|
36 |
$305.97 |
$386.97 |
$514.70 |
|
37 |
$310.07 |
$393.46 |
$524.50 |
|
38 |
$314.16 |
$400.05 |
$534.50 |
|
39 |
$318.36 |
$406.75 |
$544.70 |
|
40 |
$322.67 |
$413.65 |
$555.00 |
|
41 |
$326.97 |
$420.55 |
$565.60 |
|
42 |
$331.28 |
$427.66 |
$576.40 |
|
43 |
$335.69 |
$434.87 |
$587.40 |
|
44 |
$340.20 |
$442.18 |
$598.60 |
|
45 |
$344.72 |
$449.60 |
$610.00 |
|
46 |
$350.81 |
$458.76 |
$623.20 |
|
47 |
$357.00 |
$468.14 |
$636.70 |
|
48 |
$363.30 |
$477.71 |
$650.50 |
|
49 |
$369.71 |
$487.50 |
$664.60 |
|
50 |
$376.22 |
$497.49 |
$679.00 |
|
51 |
$382.83 |
$507.69 |
$693.80 |
|
52 |
$389.55 |
$518.09 |
$708.80 |
|
53 |
$396.38 |
$528.70 |
$724.20 |
|
54 |
$403.41 |
$539.51 |
$739.90 |
|
55 |
$410.55 |
$550.54 |
$755.90 |
|
56 |
$440.48 |
$588.75 |
$809.80 |
|
57 |
$472.61 |
$629.64 |
$867.50 |
|
58 |
$507.05 |
$673.31 |
$929.30 |
|
59 |
$543.90 |
$720.07 |
$995.50 |
|
60 |
$583.59 |
$770.03 |
$1,066.40 |
|
61 |
$626.12 |
$823.49 |
$1,142.40 |
|
62 |
$671.79 |
$880.65 |
$1,223.80 |
|
63 |
$733.74 |
$962.95 |
$1,339.80 |
|
64 |
$801.47 |
$1,052.97 |
$1,466.80 |
|
65 |
$865.58 |
$1,126.68 |
$1,569.48 |
|
66 |
$934.83 |
$1,216.81 |
$1,679.34 |
|
67 |
$1,009.62 |
$1,314.16 |
$1,796.89 |
|
68 |
$1,090.38 |
$1,419.29 |
$1,930.23 |
|
69 |
$1,211.81 |
$1,547.81 |
$2,150.64 |
|
70 |
$1,340.75 |
$1,729.87 |
$2,396.25 |
|
71 |
$1,540.77 |
$1,933.44 |
$2,669.85 |
|
72 |
$1,735.55 |
$2,160.93 |
$2,974.77 |
|
73 |
$1,924.97 |
$2,433.75 |
$3,335.67 |
|
74 |
$2,109.14 |
$2,740.95 |
$3,740.31 |
|
75 |
$2,346.15 |
$3,087.00 |
$4,194.18 |
|
76 |
$2,642.60 |
$3,476.81 |
$4,702.95 |
|
77 |
$2,976.56 |
$3,915.74 |
$5,273.55 |
|
78 |
$3,282.46 |
$4,316.20 |
$5,783.13 |
|
79 |
$3,619.73 |
$4,757.64 |
$6,342.03 |
|
80 |
$3,991.68 |
$5,244.13 |
$6,954.93 |
|
81 |
$4,401.81 |
$5,867.91 |
$7,804.10 |
|
82 |
$4,854.18 |
$6,530.20 |
$8,685.00 |
|
83 |
$5,343.31 |
$7,198.98 |
$9,574.40 |
|
84 |
$5,881.77 |
$7,874.25 |
$10,472.40 |
|
85 |
$6,474.57 |
$8,556.00 |
$11,379.10 |
|
86 |
$7,127.00 |
$9,704.97 |
$12,907.30 |
|
87 |
$7,845.30 |
$10,842.09 |
$14,419.60 |
|
88 |
$8,524.85 |
$11,967.26 |
$15,916.00 |
|
89 |
$9,263.27 |
$13,080.28 |
$17,396.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) The insurers used to tabulate the above rates are:
|
|
|
|
|
|
|
|
|
Specific Authority 627.9408(1) FS. Law Implemented 627.9407(7) FS. History–New 11-1-07, Amended ________.
69O-157.303 Home Health Care Only Rates.
(1) The footnote following Section 627.9407, F.S., states that Section 11, Ch. 2006-254, F.S., provides that “[t]his act shall apply to long-term care insurance policies issued or renewed on or after July 1, 2006. For any long-term care insurance policy issued prior to July 1, 2006, the provisions of [Section 627.94076, F.S.] shall apply to such policy only upon renewal of such policy on or after July 1, 2008, and the policy shall so provide by endorsement to the policy.”
(2) The following maximum new business rates are effective for 2009 2006 rate increase filings and for 2010 2007 rate filings until new rates are published. These annual rates are appropriate for:
(a) Tax qualified policies;
(b) A benefit of $100/day;
(c) An elimination period of 90 days;
(d) Policies offering Restoration of Benefits, and
(e) Sales in Hillsborough County. For all other counties, the rate from this table should be adjusted by the insurer’s current area factor applicable in that county relative to the insurer’s area factor in Hillsborough County.
(3)(a) Home Health Care Only Rates:
|
Issue Age |
3-Yr Benefit Period |
5-Yr. Benefit Period |
Unlimited Benefit Period |
|
30 |
$269.87 |
$312.28 |
$349.95 |
|
31 |
$269.87 |
$312.28 |
$349.95 |
|
32 |
$269.87 |
$312.28 |
$349.95 |
|
33 |
$269.87 |
$312.28 |
$349.95 |
|
34 |
$269.87 |
$312.28 |
$349.95 |
|
35 |
$289.72 |
$338.50 |
$387.94 |
|
36 |
$289.72 |
$338.50 |
$387.94 |
|
37 |
$289.72 |
$338.50 |
$387.94 |
|
38 |
$289.72 |
$338.50 |
$387.94 |
|
39 |
$289.72 |
$338.50 |
$387.94 |
|
40 |
$322.79 |
$378.01 |
$432.23 |
|
41 |
$322.79 |
$378.01 |
$432.23 |
|
42 |
$322.79 |
$378.01 |
$432.23 |
|
43 |
$322.79 |
$378.01 |
$432.23 |
|
44 |
$322.79 |
$378.01 |
$432.23 |
|
45 |
$369.28 |
$443.74 |
$508.03 |
|
46 |
$369.28 |
$443.74 |
$508.03 |
|
47 |
$369.28 |
$443.74 |
$508.03 |
|
48 |
$369.28 |
$443.74 |
$508.03 |
|
49 |
$369.28 |
$443.74 |
$508.03 |
|
50 |
$419.54 |
$503.66 |
$578.79 |
|
51 |
$432.77 |
$523.33 |
$597.70 |
|
52 |
$452.62 |
$536.43 |
$623.00 |
|
53 |
$465.85 |
$562.65 |
$648.29 |
|
54 |
$485.87 |
$582.50 |
$673.50 |
|
55 |
$529.97 |
$636.44 |
$726.61 |
|
56 |
$556.75 |
$663.03 |
$768.52 |
|
57 |
$590.32 |
$699.83 |
$810.60 |
|
58 |
$630.64 |
$749.93 |
$865.74 |
|
59 |
$670.96 |
$796.74 |
$921.05 |
|
60 |
$708.00 |
$853.39 |
$976.28 |
|
61 |
$754.93 |
$903.67 |
$1,034.35 |
|
62 |
$802.05 |
$956.95 |
$1,095.97 |
|
63 |
$865.99 |
$1,040.67 |
$1,184.05 |
|
64 |
$933.27 |
$1,124.47 |
$1,281.90 |
|
65 |
$1,010.63 |
$1,214.83 |
$1,376.28 |
|
66 |
$1,087.98 |
$1,301.72 |
$1,476.97 |
|
67 |
$1,165.25 |
$1,398.64 |
$1,583.96 |
|
68 |
$1,262.76 |
$1,515.59 |
$1,707.65 |
|
69 |
$1,366.99 |
$1,642.56 |
$1,844.12 |
|
70 |
$1,477.73 |
$1,772.81 |
$1,986.80 |
|
71 |
$1,595.09 |
$1,912.89 |
$2,135.79 |
|
72 |
$1,712.46 |
$2,056.24 |
$2,297.47 |
|
73 |
$1,840.71 |
$2,204.01 |
$2,445.41 |
|
74 |
$1,968.78 |
$2,355.32 |
$2,599.83 |
|
75 |
$2,106.93 |
$2,516.29 |
$2,763.85 |
|
76 |
$2,248.33 |
$2,680.72 |
$2,930.87 |
|
77 |
$2,389.72 |
$2,848.23 |
$3,104.12 |
|
78 |
$2,571.75 |
$3,056.67 |
$3,308.54 |
|
79 |
$2,753.77 |
$3,268.58 |
$3,519.36 |
|
80 |
$2,949.12 |
$3,483.48 |
$3,726.71 |
|
81 |
$3,151.09 |
$3,715.14 |
$3,950.13 |
|
82 |
$3,359.66 |
$3,949.80 |
$4,179.86 |
|
83 |
$3,571.71 |
$4,188.29 |
$4,410.21 |
|
84 |
$3,793.92 |
$4,433.35 |
$4,656.64 |
|
85 |
$4,025.90 |
$4,688.13 |
$4,899.59 |
|
86 |
$4,267.96 |
$4,952.94 |
$5,158.79 |
|
87 |
$4,513.17 |
$5,224.30 |
$5,420.66 |
|
88 |
$4,885.73 |
$5,633.61 |
$5,792.96 |
|
89 |
$5,261.44 |
$6,049.38 |
$6,171.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) The insurers used to tabulate the above rates are:
|
|
|
|
|
|
|
|
|
Specific Authority 627.9408(1) FS. Law Implemented 627.9407(7) FS. History–New 11-1-07, Amended ________.
69O-157.304 Comprehensive Only Rates.
(1) The footnote following Section 627.9407, F.S., states that Section 11, Ch. 2006-254, L.O.F., provides that “[t]his act shall apply to long-term care insurance policies issued or renewed on or after July 1, 2006. For any long-term care insurance policy issued prior to July 1, 2006, the provisions of [Section 627.94076, F.S.] shall apply to such policy only upon renewal of such policy on or after July 1, 2008, and the policy shall so provide by endorsement to the policy.”
(2) The following maximum new business rates are effective for 2009 2006 rate increase filings and for 2010 2007 rate filings until new rates are published. These annual rates are appropriate for:
(a) Tax qualified policies;
(b) A benefit of $100/day;
(c) An elimination period of 90 days;
(d) Policies offering Restoration of Benefits, and
(e) Sales in Hillsborough County. For all other counties, the rate from this table should be adjusted by the insurer’s current area factor applicable in that county relative to the insurer’s area factor in Hillsborough County.
(3)(a) Comprehensive Only Rates:
|
Issue Age |
3-Yr Benefit Period |
5-Yr. Benefit Period |
Unlimited Benefit Period |
|
30 |
$357.66 |
$452.19 |
$592.98 |
|
31 |
$359.27 |
$454.73 |
$596.13 |
|
32 |
$360.91 |
$457.15 |
$599.55 |
|
33 |
$362.81 |
$467.83 |
$610.09 |
|
34 |
$372.25 |
$470.36 |
$613.92 |
|
35 |
$392.37 |
$485.24 |
$646.03 |
|
36 |
$394.19 |
$495.83 |
$656.91 |
|
37 |
$396.24 |
$498.95 |
$660.88 |
|
38 |
$398.57 |
$501.94 |
$664.98 |
|
39 |
$408.46 |
$505.21 |
$669.38 |
|
40 |
$422.18 |
$538.84 |
$704.43 |
|
41 |
$426.52 |
$542.98 |
$711.03 |
|
42 |
$430.28 |
$547.83 |
$717.94 |
|
43 |
$434.51 |
$552.75 |
$733.25 |
|
44 |
$445.46 |
$558.21 |
$740.15 |
|
45 |
$457.15 |
$588.24 |
$767.35 |
|
46 |
$469.07 |
$593.07 |
$782.73 |
|
47 |
$474.02 |
$599.22 |
$790.99 |
|
48 |
$479.33 |
$605.50 |
$799.51 |
|
49 |
$492.01 |
$611.69 |
$822.72 |
|
50 |
$502.21 |
$631.63 |
$839.32 |
|
51 |
$518.00 |
$648.72 |
$859.73 |
|
52 |
$533.51 |
$674.20 |
$887.15 |
|
53 |
$550.58 |
$693.44 |
$918.49 |
|
54 |
$568.09 |
$721.86 |
$949.96 |
|
55 |
$588.25 |
$733.65 |
$980.98 |
|
56 |
$626.56 |
$787.13 |
$1,040.83 |
|
57 |
$661.34 |
$841.03 |
$1,109.08 |
|
58 |
$705.13 |
$905.55 |
$1,179.64 |
|
59 |
$741.88 |
$954.58 |
$1,260.83 |
|
60 |
$795.99 |
$1,022.36 |
$1,336.52 |
|
61 |
$852.97 |
$1,093.08 |
$1,431.38 |
|
62 |
$919.59 |
$1,166.20 |
$1,537.41 |
|
63 |
$991.75 |
$1,254.51 |
$1,661.23 |
|
64 |
$1,059.64 |
$1,337.42 |
$1,777.18 |
|
65 |
$1,130.19 |
$1,414.66 |
$1,895.31 |
|
66 |
$1,239.89 |
$1,554.84 |
$2,083.84 |
|
67 |
$1,369.00 |
$1,719.56 |
$2,290.03 |
|
68 |
$1,512.16 |
$1,894.92 |
$2,524.36 |
|
69 |
$1,651.51 |
$2,086.98 |
$2,776.71 |
|
70 |
$1,802.07 |
$2,295.68 |
$3,049.92 |
|
71 |
$2,041.92 |
$2,572.02 |
$3,414.19 |
|
72 |
$2,293.64 |
$2,876.35 |
$3,811.27 |
|
73 |
$2,557.01 |
$3,196.06 |
$4,229.60 |
|
74 |
$2,833.53 |
$3,547.08 |
$4,682.75 |
|
75 |
$3,132.41 |
$3,931.85 |
$5,162.40 |
|
76 |
$3,519.05 |
$4,396.08 |
$5,779.67 |
|
77 |
$3,925.72 |
$4,914.88 |
$6,453.45 |
|
78 |
$4,344.97 |
$5,450.22 |
$7,131.36 |
|
79 |
$4,779.15 |
$5,988.95 |
$7,829.68 |
|
80 |
$5,206.95 |
$7,201.34 |
$9,704.96 |
|
81 |
$5,695.37 |
$7,855.63 |
$10,582.32 |
|
82 |
$6,200.20 |
$8,560.10 |
$11,522.41 |
|
83 |
$6,772.84 |
$9,335.36 |
$12,551.65 |
|
84 |
$7,380.07 |
$10,190.80 |
$13,680.13 |
|
85 |
$8,971.35 |
$11,276.50 |
$15,228.74 |
|
86 |
$10,532.62 |
$13,010.62 |
$17,716.18 |
|
87 |
$11,566.04 |
$14,303.82 |
$19,459.57 |
|
88 |
$12,659.68 |
$15,643.72 |
$21,277.97 |
|
89 |
$13,799.95 |
$17,046.75 |
$23,185.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) The insurers used to tabulate the above rates are:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specific Authority 627.9408(1) FS. Law Implemented 627.9407(7) FS. History–New 11-1-07, Amended________.