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Recently in Florida, policyholders for long-term care insurance have been informed that they will see a large increase in their annual premiums. For example, Blue Cross Blue Shield will increase their policyholder’s premiums by an average of 94% over the next three years. After the premium hike, the rate will then be frozen for five years.
These increases are due in large part to challenges that were not seen when the policies were originally priced and marketed. Policyholders are using more benefits than expected and living longer.
One policyholder was given the choice to “pay the increased premium to maintain the coverage level as originally purchased, continue to pay the old premium and accept reduced benefits, or freeze the policy and accept a maximum lifetime benefit equal to the cumulative premium paid by the couple.”
Thirty long-term care insurance providers in Florida have increased their premiums over the last 2 years.