Mutual of Omaha Joins The Party

[Arthur Rudnick]

Mutual of Omaha just announced that they have filed for rate increases on existing policyholders.

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MPACTED BLOCK OF BUSINESS​

The impacted blocks of business include only the policies listed below that were sold in 2004 and earlier:​

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NHA​

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LTA​

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HCA​

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LT50​

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NH50​

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ATE INCREASE AMOUNTS​

The following rate increases are being filed. Actual increases will be based on state approval.​

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Policies with a lifetime benefit period: A 30 percent increase in 2011, then an additional 11.5 percent increase in
2012​

• Policies with other benefit periods: A 15 percent increase in 2011

 

[HealthGuy]

anyone surprised?

 

[Mr_Ed]

that's all?

 

[scagnt83]

What a shocker..... just another example of how the LTC industry is insolvent.... just wait

 

[Mr_Ed]

What a shocker..... just another example of how the LTC industry is insolvent.... just wait

gimmeabreak.

Do you realize how ridiculous that statement is?

 

[billberry12]

Come on scagnt83. I have rate increases on my medical insurance each year. Does that mean the health insurance industry is insolvent? Homeowners and auto go up too. Been doing it long as I can remember, and those industries didn't do down insolvent.

 

[Crabcake Johnny]

Depends on how honest you want to be with your clients. My health clients knew going into the application that rates increase around 12% annually. They knew it was a game of musical chairs.

What are the LTC clients being told? Is a 55 year old under the impression that he'll keep that policy at current rates until he's in his 70's? Or is he being told to expect "X" percent in rate increase so by the time he's 70 he'll likely be paying double the rates.

 

[Arthur Rudnick]

Healthagent,
I can only assume that you do little or no LTC insurance. Because if you did, you would be aware that every company requires an applicant's signature advising them that premiums can go up in the future, along with a listing of previous increases by policy series.

 

[billberry12]

I don't think the Health Insurance applications have that form do they Arthur? Why do we have in in the LTCI industry, and they don't in the health insurance industry?

 

[Crabcake Johnny]

...well then I'm only left to assume that you don't understand how insurance agents will explain that away in order to land that commission. Oh wait, agents would never do that.