Long-Term Care insurance (LTCi) is a core product for Mutual of Omaha and we intend to remain a key player in this market for years to come. In order to fulfill this commitment, we actively monitor emerging industry trends as well as our own experience so we can make the adjustments necessary that will allow us to keep our promises to policyholders and remain competitive in the marketplace.
For this reason, on May 1, 2015, we will be implementing a rate increase on in-force business in (North Dakota). Impacted blocks of business include only the policies listed below, or their state equivalent, that were sold from 1997 to 2004 (paid-up policies in the affected blocks of business will not be impacted by the rate increase):
- NHA
- LTA
- HCA
- LT50
- NH50
Shown below are the rate increase amounts by state:
| States | Policies with lifetime benefit periods | |
|
2015 |
2016 |
|
|
North Dakota |
15% |
TBD* |
*NOTE: A second filing on the Lifetime Benefit Period will be made in 2016 in North Dakota.
POLICYHOLDER NOTIFICATION
Policyholders will be notified a minimum of 60 days prior to the rate increase implementation date. Therefore, beginning March 1, 2015, policyholders in the approved states will begin receiving notification of the rate increase that will be effective May 1, 2015. Policyholders with a billing period after May 1, 2015, will receive their notification 60 days prior to their next billing date.
Along with the rate increase notification letters, policyholders will receive an adjustment offer. Offers give the policyholders benefit reduction alternatives to help reduce the impact of the premium increase. To view the possible adjustment offers, please see the dedicated “LTCi Rate Adjustment” page on Sales Professional Access (SPA).
AGENT NOTIFICATION
Agents with impacted policyholders will be notified in advance of the policyholder letters being mailed. This will include a list of impacted policyholders and rate increase effective dates which are available on Sales Professional Access. Agents should proactively contact impacted policyholders to:
- Remind them why they purchased LTCi
- Explain the options for adjusting their policy benefits to keep premiums similar to what they currently pay
To view a sample of the policyholder letter, as well as find out more information regarding the rate increase, be sure to visit the dedicated “LTCi Rate Adjustment” page on SPA.
AVAILABLE RESOURCES
Additional resources are available on the dedicated LTCi Rate Adjustment page on SPA. For any questions, please contact your Sales Director or Sales Support at (800) 693-6083 or at sales.support@mutualofomaha.com.