The General Assembly Raised Bill No. 478 seeks to enhance consumer protections and improve the administration of long-term care insurance policies in Connecticut. Key provisions include the establishment of an outreach program by the Office of Policy and Management to educate consumers on long-term care needs and financing options. The bill mandates annual reports on incurred and actual paid losses for long-term care policies and explores the feasibility of allowing policyholders to cancel their insurance for full refunds when rate increases exceed inflation. Additionally, it introduces new requirements for insurance policies, such as informing purchasers about consumer information from the Department of Aging and Disability Services, including home and community-based services, and prohibiting the tying of executive compensation to the approval of higher rates.

The bill also sets a loss ratio requirement of at least sixty percent for long-term care policies and outlines a process for rate increases, including detailed disclosures regarding reinsurance contracts. It restricts premium rate increases, requiring that any increase of twenty percent or more be spread over at least three years, and mandates insurers to notify policyholders of options to reduce benefits or select affordable coverage before implementing rate hikes. Furthermore, the Attorney General is empowered to investigate violations and take legal action against insurers, including issuing subpoenas and imposing civil penalties. The effective date for these provisions is July 1, 2026, aiming to ensure better consumer protection in long-term care insurance purchases.

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