OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-1046
AN ACT CONCERNING LONG -TERM CARE INSURANCE.
As Amended by Senate "A" (LCO 8470)
House Calendar No.: 544
Senate Calendar No.: 238
Primary Analyst: MP 5/21/21
Contributing Analyst(s):
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services GF - Potential
Revenue Loss
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill makes various changes regarding long-term care (LTC)
insurance laws. It results in a potential revenue loss due to lower
insurance premium taxes, to the extent the following provisions of the
bill result in reduced direct written premiums: (1) limiting the
frequency of large rate increases, (2) enabling policyholders to switch
to a lower cost policy for a minimum set of benefits, and (3)
prohibiting LTC carriers from selling and renewing LTC policies after
January 1, 2022, unless they are also authorized to sell another line of
insurance.
1
There is no fiscal impact to the Insurance Department, as the agency
2The insurance premiums tax is levied at a rate of 1.5% on all net direct premiums
underwritten. The Department of Revenue Services collected $202.5 million from the
insurance premiums tax in FY 20; it is uncertain how much of that revenue is from policies that
could be affected under the bill. As all LTC insurance is “guaranteed renewal,” it is not clear if
the bill can require a mono-line carrier to non-renew existing policies.
2021SB-01046-R01-FN.DOCX Page 2 of 2
has the capacity to develop the minimum set of affordable benefit
options and to otherwise carry out the regulation required by the bill.
Senate "A" removes provisions that would have allowed the
Attorney General to take legal action to secure compensation for
insureds under certain circumstances and eliminates the potential costs
in the bill.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly,
solely for the purposes of information, summarization and explanation and does not represent the intent of the
General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety
of informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is
consulted as part of the analysis, however final products do not necessarily reflect an assessment from any
specific department.