HB 303
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 303 (Delegate Stewart)
Health and Government Operations
Long-Term Care Insurance - Prohibition on Premium Increases (Long Term
Stability for Seniors Act)
This bill prohibits a carrier from increasing a premium for long-term care insurance issued
to an insured or entered into by a contract holder who is age 85 or older.
Fiscal Summary
State Effect: Minimal special fund revenue increase for the Maryland Insurance
Administration (MIA) in FY 2022 from the $125 rate and form filing fee. Any expenditures
related to review of filings and enforcement can be absorbed within existing MIA budgeted
resources.
Local Effect: None.
Small Business Effect: None.
Analysis
Current Law: Chapter 672 of 2017 prohibits a carrier from charging a premium to an
insured under a long-term care policy or contract or changing the premium charged before
the premium rate or rate change has been filed with and approved by the Maryland
Insurance Commissioner. The Commissioner must provide specified information about
long-term care insurance premium rates on the MIA website.
The Commissioner must disapprove or modify a proposed premium rate filing if, based on
actuarial analysis and reasonable assumptions, the rate appears to be inadequate, unfairly
discriminatory, or excessive in relation to benefits. In determining whether to disapprove
or modify a premium rate filing, the Commissioner must consider (1) past and prospective
loss experience inside and outside of the State; (2) underwriting practice and judgment;
(3) a reasonable margin for reserve needs; (4) past and prospective expenses, nationally
and in Maryland; and (5) any other relevant factors. Each decision or finding of the
Commissioner about premium rates is subject to judicial review.
Although there is no rate cap in statute, under Maryland regulations, a carrier may not raise
long-term care insurance premiums by more than 15% in any 12-month period. However,
an increase can be in excess of 15% if the carrier demonstrates that the utilization of policy
benefits is greatly in excess of the expected rate.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Maryland Department of Aging; Maryland Department of
Health; Maryland Insurance Administration; Department of Legislative Services
Fiscal Note History: First Reader - February 2, 2021
rh/ljm
Analysis by: Jennifer B. Chasse Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 303/ Page 2


Statutes affected:
Text - First - Long-Term Care Insurance - Prohibition on Premium Increases (Long Term Stability for Seniors Act: 11-703 Insurance