MUTA-128462729

RATE FILING SUMMARY

2012 Mutual of Omaha Standardized Medicare Supplement Rate Adjustment - Individual Standard Plans
Company is proposing an overall average rate increase of 14.5%

Plan B - M244, MM21
Plan C - M182, MM22
Plan D - M278, MM23
Plan F - M183, MM24
Plan G – MM25
Plan H - M249, Rider 0LG4M
Mutual of Omaha regularly reviews the experience of its Medicare supplement business to ensure it will honor its promise to pay future claims. Primary factors impacting product performance are medical cost trends and the number of people filing Medicare supplement claims. 
Based on the actual and projected Medicare supplement experience, the proposed premium increase is necessary to bring anticipated future claims in line with the target loss ratios approved by the Vermont Department of Insurance.  The company has requested an overall premium increase of 14.5% on the 1990 standardized Medicare supplement block and 14.7% on the 2010 modernized plans block.  Specifically, the proposed increases are:       

• 6.5% for Medicare supplement Plans A and B
• 5% for Plan F
• 18% for Plans D and G
• No change for Plans C and H

Claims experience on Plans D and G is exceptionally higher than expected requiring an increase above medical cost trend to pay future claims. The remaining premium changes are limited to medical cost trend increases or lower.  The proposed 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 the Department of Insurance approves them.

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