Substitute Senate Bill No. 478 seeks to strengthen consumer protections for long-term care insurance policies in Connecticut by implementing several key measures. The bill mandates the Office of Policy and Management (OPM) to create an outreach program to educate consumers on long-term care needs and financing options. It introduces new reporting requirements, including an annual report on incurred and actual paid losses for long-term care policies, which the Secretary of OPM must file in consultation with the Insurance Commissioner. Additionally, the bill allows policyholders to cancel their insurance and receive full refunds of premiums paid if rate increases exceed inflation. It also revises precertification criteria for long-term care policies, ensuring essential services are covered and establishing a minimum loss ratio of sixty-five percent for group policies.

Moreover, the bill enhances regulatory oversight by prohibiting rate increases that exceed the average rate increase at the time of precertification and preventing policies from requiring prior hospitalization for benefits. It empowers the Attorney General to investigate and take legal action against insurers that violate these provisions, allowing for civil penalties without needing to prove public interest or injury. The bill also includes various insertions and deletions to existing laws, such as removing provisions related to executive compensation tied to rate approvals and requiring insurers to disclose reinsurance contract details in rate filings. The amendments are set to take effect on July 1, 2026, with an estimated fiscal impact of approximately $440,500 in FY 27 and $130,370 in FY 28 for the state.

Statutes affected:
Raised Bill:
HS Joint Favorable:
File No. 370: