The proposed legislation, Substitute Bill No. 7183, aims to enhance the regulation of long-term care insurance in Connecticut. It mandates the Insurance Department to submit a report by February 1, 2026, evaluating an alternative pool for long-term care policyholders with policies exceeding twenty years. Additionally, the bill requires the Insurance Department to hold public hearings for premium rate increase requests exceeding ten percent, ensuring that policyholders receive advance written notice of such hearings. Furthermore, starting January 1, 2026, insurance providers must inform individuals about the risk of future premium rate increases before they purchase long-term care policies.

The bill also introduces specific limitations on premium rate increases for long-term care policies, particularly for those purchased before December 31, 1985, and for policyholders aged eighty or older or those who have experienced significant premium increases. The Secretary of the Office of Policy and Management is tasked with evaluating the provision of long-term care insurance and reporting findings by February 1, 2026. Additionally, the bill repeals and replaces Section 17b-254, establishing new reporting requirements and instituting a biennial limited performance audit of the Connecticut Partnership for Long-Term Care. The changes aim to improve oversight and ensure better consumer protection in the long-term care insurance market.

Statutes affected:
GOS Joint Favorable Substitute:
File No. 520:
INS Joint Favorable: