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The Long-Term Care Actuarial (B) Working Group is considering revised cost-sharing factors to accompany implicit cost-sharing contained in the blended / if-knew aspect of the MSA approach adopted by the Working Group and the Long-Term Care Insurance (B) Task Force in late 2024.

Please provide comments to eking@naic.org on the following cost-sharing proposals by May 12, 2025:

Missouri Proposal:

•    No haircut for the first 100%.

•     35% for the portion of cumulative rate increase between 100% and 400%

•     70% for the portion of cumulative rate increase between 400% and 800%

•     85% for the portion of cumulative rate increase between 800% and 1000%

•     95% haircut for the portion of the cumulative rate increase in excess of 1000%

“Alternative” Proposal, discussed on the February 21, 2025 Working Group call:

•       5% haircut for the first 100%.

•     35% for the portion of cumulative rate increase between 100% and 400%

•     70% for the portion of cumulative rate increase between 400% and 800%

•     85% for the portion of cumulative rate increase in excess of 800%

There will be a Working Group call in mid to late May to choose between the proposals or factors in between those stated in the proposals.

By May 12, 2025, please also provide comments on a proposal previously provided by the Pennsylvania Department. This proposal states that the Multi-State Actuarial Team would not recommend a rate increase for any state higher than 100% of current rates in that state. The idea is to provide a path forward for states with lower past cumulative approvals by avoiding recommendation of extremely high rate increases. In subsequent filings with states (or if arrangements are worked out with a state), companies could file to recoup what was justified.