The proposed legislation, Substitute Bill No. 5304, aims to enhance transparency and consumer protection regarding long-term care insurance premium rates. Effective January 1, 2027, the Insurance Department will be required to hold a public hearing for any long-term care premium rate increase requests that exceed ten percent. Notice of such hearings must be provided electronically to relevant joint standing committees of the General Assembly at least fourteen days in advance. Additionally, insurance providers seeking these increases must notify policyholders in writing about the hearing details, also at least fourteen days prior.

Furthermore, the bill stipulates that no insurance company, fraternal benefit society, hospital service corporation, medical service corporation, or health care center can deliver, issue, renew, continue, or amend any long-term care policy in the state after January 1, 2027, without first providing written notice to potential policyholders about the risk of future premium rate increases prior to the purchase of any long-term care policy. This new requirement aims to ensure that consumers are fully informed about potential financial implications before committing to long-term care insurance.