Substitute House Bill No. 5304, effective January 1, 2027, introduces new regulations for long-term care (LTC) insurance in Connecticut. The bill mandates that any insurance company, fraternal benefit society, hospital service corporation, medical service corporation, or health care center must provide written notice to potential policyholders regarding the risk of future premium rate increases before they purchase any LTC policy. Additionally, if an insurer requests a premium rate increase exceeding 10%, the Insurance Department is required to hold a public hearing. Insurers must notify policyholders in writing at least 14 days prior to the hearing, and the Insurance Department must electronically notify the relevant legislative committees.

The bill also entails a fiscal impact, as the Insurance Department will incur costs associated with holding approximately 40 public hearings annually, necessitating the hiring of a new staff member. The estimated costs for the Insurance Fund are projected to be $72,650 in FY 27 and $141,500 in FY 28, with ongoing costs expected to continue into the future. Overall, the bill aims to enhance transparency and protect consumers in the long-term care insurance market by ensuring they are informed about potential premium increases.