Senate Bill No. 1420 seeks to strengthen the Connecticut Partnership for Long-Term Care by introducing several significant amendments to existing laws governing long-term care (LTC) insurance. The bill establishes an outreach program by the Office of Policy and Management (OPM) to inform consumers about long-term care needs and financing options. It requires the Secretary of OPM, in collaboration with the Insurance Commissioner, to submit annual reports on long-term care policy losses and a specific report by October 1, 2025, assessing the feasibility of allowing policyholders to cancel their insurance for full refunds when rate increases exceed inflation. Additionally, the bill modifies precertification requirements for LTC insurance policies to include consumer information, home and community-based services, and inflation protection, while prohibiting policies that necessitate prior hospitalization for benefits.

Furthermore, SB 1420 imposes new reporting obligations on insurance companies, including an annual report on incurred and paid losses for LTC policies, and restricts the approval of rate increases to those permissible at the time of precertification. The bill deletes the requirement for policies to maintain records and explanations related to Medicaid resource exclusion, while adding a provision that executive compensation cannot be linked to the approval of higher rates. Overall, the bill aims to enhance consumer protection and transparency in the LTC insurance market in Connecticut, ensuring that policyholders are better informed and safeguarded against excessive rate increases. The provisions of the bill are set to take effect on July 1, 2025.

Statutes affected:
Raised Bill:
HS Joint Favorable:
File No. 381: