General Assembly Raised Bill No. 1420 seeks to enhance the Connecticut Partnership for Long-Term Care by implementing significant changes to existing long-term care insurance statutes. The bill mandates the Office of Policy and Management to create an outreach program to inform consumers about long-term care needs and financing options. It also requires the Secretary of the Office of Policy and Management, in consultation with the Insurance Commissioner, to file annual reports on incurred and actual paid losses for long-term care policies, as well as a feasibility report on allowing policyholders to cancel their insurance for full refunds in the event of significant rate increases. Additionally, the bill modifies precertification requirements for long-term care insurance policies, ensuring they provide essential consumer information and options for home and community-based services.

The legislation introduces new stipulations, including a prohibition on policies that tie executive compensation to rate increases and mandates detailed reporting on reinsurance contracts. It establishes stricter loss ratio requirements, stating that no long-term care policy can have a loss ratio of less than sixty-five percent for group policies. Insurers must obtain prior approval from the Insurance Commissioner before changing premium rates, and any rate increase for precertified policies cannot exceed the allowable rate increase at the time of precertification. The bill also outlines a structured approach for implementing premium rate increases, particularly those exceeding twenty percent, which must be spread over a minimum of three years. Insurers are required to notify policyholders of any rate increases and provide options to adjust benefits, with an effective date for these changes set for July 1, 2025.

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