We are currently in the process of raising rates on all BCBS of Florida Long Term Care insurance policies. This notice is to inform you that we have received rate approval from the Florida Office of Insurance Regulation and are implementing the rate increase activity in this state. The approved rate increase is age-banded with a 25% increase for insureds with issue ages less than 51 with the increase decreasing linearly to 0% for issue age 80 and over. Commissions will not be paid on the increased premium.

A notification letter describing the premium rate increase will be mailed to each insured at least 45 days before the increase takes effect. Insureds who meet any of the three conditions listed below will receive a Selection Form, which provides information on other available options if they do NOT want to pay the increased premium:

•     CONDITION # 1: The insured’s current Daily Benefit Amount must be high enough so that it can be reduced to a new amount that will allow them to pay approximately the same premium that they pay now. If the insured’s Daily Benefit Amount cannot be reduced low enough to keep the premium close to its current level, they will not be provided with this option. Insured’s who are eligible will be shown a new reduced Daily Benefit Amount and the new premium. This reduced benefit option will be available beginning with the effective date of the rate increase for that insured for 60 days.

•     CONDITION # 2: Insureds who have previously purchased the Shortened Benefit Non-Forfeiture Rider will be provided with the option of exercising that rider. This will significantly reduce the maximum policy benefits.

Under this rider, the current Lifetime Benefit Amount will be reduced to the greater of 30 times the current Daily Benefit Amount or the total amount of all premiums paid since the policy was first issued. If the insured has already received benefits under the policy and the remaining benefit amount is less than the total amount of premiums paid, the amount of coverage will be that remaining amount. No future increases under any Inflation Rider will occur. Premiums can no longer be paid and the remaining benefit amount cannot be increased. If this option is available to the insured and coverage lapses due to cancellation or nonpayment of premium at any time, this option will be deemed elected by the insured.

•     CONDITION # 3: Insureds with Limited Payment Terms may select the Contingent Non-Forfeiture Option and exercise their right to convert coverage to a “paid-up” status with a shortened benefit period and reduced benefits.

Under this option, the current Lifetime Benefit Amount will be reduced to the greater of 30 times the current Daily Benefit Amount or the total amount of all premiums paid since the policy was first issued. If benefits have already been received under the policy and the remaining benefit amount is less than the total amount of premiums paid, the amount of coverage will be that remaining amount. No future increases under any Inflation Rider will occur. Premiums can no longer be paid and the remaining benefit amount cannot be increased. If this option is available and coverage lapses due to cancellation or nonpayment of premium any time between now and 120 days following the due date of the first increased premium, this option will be deemed elected by the insured.
 

No Selection Form will be provided to insureds who do not meet at least one of the conditions listed above, although all insureds are encouraged to call us to discuss other options that may be available which would allow them to keep some coverage in force.

We encourage you to contact MedAmerica’s Custom Service Team at 1-800-240-1675 with questions or concerns.
 

Update BCBS of Florida Rate Increase Action

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