ABAI-128385173

RATE FILING SUMMARY

Government Personnel Mutual Life Insurance Company’s Individual Medicare Supplement-Standard Plans 2010
Company is proposing an overall increase of 14.6%, with the increases on plans ranging from 9% to 15%

Form MTP20 – Plan A
Form MTP22 – Plan C
Form MTP24 – Plan F
Form MTP25 – Plan G
Form MTP31 – Plan N

Government Personnel Mutual regularly reviews the experience of its Medicare Supplement
block of business. Currently, company experience indicates that the claims for this block of
business have been 20% higher than expected on a nationwide basis, while the Vermont only
claims exceed expectations by more than 90%. Due to the lack of credible experience in the
Vermont only data, the Company has aligned the proposed rate increase for Vermont
policyholders with the nationwide experience. Recognizing that large increases in premiums are
not welcome news to policyholders, the Company has limited the size of the increase requested
due to adverse claims experience to be no greater than 8%. With a 7% increase due to medical
trends the proposed increase is 15% for plans A, C, F, G, and 9% for plan N which has realized
significantly better experience than the other plans. These increases have been filed with and will
be reviewed by the Vermont Department of Insurance. This filing complies with the laws and
regulations of the State of Vermont, and will not be implemented until approved by the
Department of Insurance.

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