Long-term care insurance premiums can rise after purchase, regulators warn

Traditional long-term care insurance can cost more years after a policy is sold, because insurers file for rate increases that state regulators review before any new price takes hold. That makes the purchase a retirement-risk decision as much as a coverage decision: the premium promised at issue is not always the premium paid over time.

Wisconsin’s Office of the Commissioner of Insurance said its Consumer’s Guide to Long-Term Care had to be given to prospective buyers when an application is taken or when long-term care insurance is solicited, a rule that puts the warning in front of consumers before they commit. The National Association of Insurance Commissioners’ 2022 Shopper’s Guide to Long-Term Care Insurance told buyers to check companies’ premium increase histories and ask whether insurers have raised rates on the long-term care policies they sell. The NAIC’s long-term-care materials also address rate increase filings, implementation, disclosure and consumer protections, showing that premium changes are built into the product’s regulatory framework.

California has turned the issue into a standing public record. State law requires the Insurance Commissioner to annually prepare a Consumer Rate Guide for long-term care insurance, and the California Department of Insurance says annual long-term-care reports are available to the public. The department also maintains a consumer advisory titled Long-Term Care Insurance Rate Increase, a sign that premium hikes remain a live issue for policyholders who bought coverage expecting stable costs.

The federal program follows the same basic logic. The Federal Long Term Care Insurance Program maintains pages on premiums, why increases happen and how the program is funded, underscoring that long-term care coverage is not a one-price product even in a government-backed setting. A 2025 California Health Advocates training document by Bonnie Burns said policyholders who get an increase notice need to understand the options that can reduce the increase, because the choice changes both current and future benefits.

That is the checklist consumers need before buying. Ask for the insurer’s rate-increase history, ask whether the company has increased premiums on similar policies, and ask what reduced-benefit options would be available if rates rise later. Also ask whether a hybrid policy offers more predictable costs, and how any fixed premium compares with the tradeoffs in benefits if care is eventually needed.