House Bill No. 7226, effective January 1, 2026, introduces significant changes to long-term care insurance regulations and the eligibility criteria for state contracts with insurers. The bill requires the Insurance Department to conduct public hearings for any long-term care premium rate increase requests that exceed ten percent, with insurers obligated to notify policyholders at least fourteen days prior to such hearings. Additionally, insurers must inform potential buyers about the risk of future premium increases before the purchase of any long-term care policy. The legislation also establishes a loss ratio requirement of at least sixty percent for individual long-term care policies and mandates that any premium rate increase of twenty percent or more be implemented over a minimum of three years.

Moreover, the bill sets forth new stipulations for state contracts with insurers, effective October 1, 2025. State agencies are prohibited from entering into contracts with insurers unless the insurers' principals and key personnel certify that they have not violated specific provisions of the act or related statutes in the past five years. If an insurer does not agree to these representations, their bid will be rejected. The bill also facilitates information sharing between the Insurance Commissioner and the Commissioner of Administrative Services to ensure compliance with these requirements. Overall, HB 7226 aims to enhance consumer protection in long-term care insurance and promote accountability among insurers seeking state contracts.