Long-term care rate review framework should be 'fully operational' by Q3'22

U.S. insurance regulators are making progress toward fashioning a uniformed approach to handling long-term care insurance rate review requests across state lines.

An executive-level task force of the National Association of Insurance Commissioners adopted a multistate review framework aimed at producing reliable and consistent rate recommendations for regulators. According to a task force document, the framework is designed to encourage insurers to submit LTC products for multistate reviews, give insurance departments confidence to use the recommendations provided by the multistate review team and "foster as much consistency as possible between states" in their approach to rate increases.

During the NAIC's fall meeting, Colorado Insurance Commissioner Michael Conway urged both long-term care insurers and states to get involved, calling their participation "critical" for success.

"The number one benefit of the framework is the expectation that, through this coordinated review process, we can reduce inequities in rate approvals between states," Conway said, adding that it does not subvert the authority of individual states to make rate decisions.

Conway said the multistate actuarial process will continue to evolve with feedback received from insurers and regulators and is "likely be revised in the future."

The LTC multistate rate review framework will be considered for adoption by the NAIC Executive Committee and plenary at the spring 2022 national meeting, according to Virginia Insurance Commissioner Scott White, who chairs the LTC executive-level task force.

"In 2022, the subgroup will focus on implementing the framework, and that is expected to be fully operational by September," White said. "Even before it becomes fully operational, we hope and expect that the reviews will continue."

The NAIC's spring national meeting is scheduled for April 2022 in Kansas City, Mo.