House Bill No. 7226, effective January 1, 2026, introduces significant regulations for long-term care (LTC) insurance and the eligibility of insurers for state contracts. The bill requires the Insurance Department to hold public hearings for any LTC premium rate increase requests that exceed ten percent, with insurers obligated to notify policyholders at least fourteen days prior to these hearings. Additionally, insurers must inform potential policyholders about the risk of future premium rate increases before the purchase of any LTC policy. The legislation establishes a minimum loss ratio of sixty percent for LTC policies and mandates that any proposed premium rate increase must be justified to prevent insolvency.

Moreover, starting October 1, 2025, state agencies are prohibited from entering into contracts with insurers unless those insurers certify that they have not violated the new hearing and notification requirements or existing rate filing requirements in the past five years. If an insurer fails to comply with these representation requirements, their bid will be rejected. The bill also facilitates information sharing between the Insurance Commissioner and the Commissioner of Administrative Services to ensure compliance. Overall, HB 7226 aims to enhance consumer protection in the LTC insurance market while ensuring accountability among insurers involved in state contracts.