This bill amends Minnesota Statutes 2024, section 62S.23, subdivision 1, to enhance inflation protection for long-term care partnership policies. It mandates that insurers offer policyholders options for inflation protection that account for anticipated increases in long-term care service costs. Specifically, the bill requires that policies sold on or after July 1, 2015, must provide inflation protection that is no less favorable than a five percent annual increase, while policies sold before this date must offer at least three percent per year, a rate based on the Consumer Price Index, or one percent per year if the policyholder requests a reduction.

Additionally, the bill stipulates that long-term care partnership policies must include specific inflation protection features based on the age of the policyholder at the time of purchase. For individuals under 61, policies must provide compound annual inflation protection; for those aged 61 to 75, some level of inflation protection is required; and for those over 76, it is optional. The bill also includes a provision for the commissioner of human services to approve alternative types of inflation protection that align with the partnership program's goals. The changes will take effect on January 1, 2027, or upon federal approval, whichever is later.

Statutes affected:
Introduction: 256B.0571
1st Engrossment: 62S.23