LTC13 Pre-Rate Refresh Policies

As communicated in February 2025, we began filing for rate increases on the LTC13 pre-rate refresh policies. While many states have reviewed and approved rate increases for these policies, there are a number of states that did not approve the increases as initially requested. Due to this, we will be submitting additional rate increase requests in those jurisdictions.

As a reminder, LTC13 pre-rate refresh policies refer to the subset of in-force LTC13 policies issued prior to the rate refresh that began in 2020.

The rate increases have been and continue to be requested to ensure the premiums policyholders are paying reflect the current and projected claims experience, which allows us to continue to meet policyholder needs and ensure the product remains financially sustainable for the company.

What You Need to Know

• This involves adjusting existing premium rates to reflect current claims experience and anticipated future costs
• The adjusted premium rates for the LTC13 pre-rate refresh policies will be capped at a rate level that does not exceed rates on the currently marketed LTC13 product and are subject to state approval
• In jurisdictions where the full rate increase was approved as requested for the LTC13 pre-rate refresh product, the company does not currently have plans to request additional increases

Why the Rate Increases are Necessary

• Higher Claims Incidence: More policyholders than anticipated are filing claims.
• Longer Claims Duration: Policyholders are remaining on claims longer than initially anticipated.
• Mortality and Lapse Experience: While mortality rates have improved, voluntary lapse rates are consistent with expectations and policyholder demographics have helped offset some adverse deviations.

Our goal is to be transparent with policyholders about future rate increases and provide options for adjusting coverage or making other changes to ensure the product continues to meet their needs.

Policyholder Communication & Support

• We will notify policyholders in advance about future rate changes, allowing them time to adjust their coverage as and if needed.
• Our Customer Service team is available to help producers and policyholders with options.
• Benefit decrease options will be based on the policyholders' existing contract. It is always advisable for policyholders to discuss their options with a producer or customer service representative to determine the best path forward.

Mutual of Omaha remains committed to our policyholders, the long-term care insurance marketplace and continuing to offer competitive products with features and benefits to fit clients’ needs. We appreciate your support and partnership in communicating these important updates.

If you have any questions or need additional information, please feel free to reach out to your sales director.

Thank you for your continued commitment to providing excellent service to our mutual clients.

Delphine Soucie
VP of Brokerage Sales
Health & Annuity Solutions