The bill SB1420, titled "An Act Concerning the Connecticut Partnership for Long-Term Care," seeks to improve consumer education and regulatory oversight of long-term care insurance in Connecticut. It requires the Office of Policy and Management (OPM) to create an outreach program to educate consumers about long-term care needs and financing options. The Secretary of OPM, in collaboration with the Insurance Commissioner, must submit annual reports detailing incurred and actual paid losses for long-term care policies and assess the feasibility of allowing policyholders to cancel their insurance for full refunds in the event of significant rate increases. The bill also introduces new requirements for long-term care insurance policies, such as informing purchasers about consumer information from the Department of Aging and Disability Services and ensuring that policies offer home and community-based services.

Additionally, the bill enforces stricter regulations on long-term care insurers, including a minimum loss ratio of 65% for group policies and a prohibition on linking executive compensation to the approval of higher rates. It repeals subsection (b) of section 38a-528 and replaces it with updated language that incorporates these new compliance requirements. The bill also mandates that the insurance commissioner cannot approve any rate increase for partnership policies that exceeds the previously allowed rate during precertification. The OPM is tasked with reporting on the feasibility of allowing policyholders to cancel their insurance for refunds by October 1, 2025, and the bill is set to take effect on July 1, 2025.

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