Researcher: AR Page 1 5/21/21
OLR Bill Analysis
SB 1046 (File 371, as amended by Senate "A")*
AN ACT CONCERNING LONG -TERM CARE INSURANCE.
SUMMARY
This bill imposes certain consumer protection measures on insurers,
HMOs, fraternal benefit societies, and hospital or medical service
corporations (referred to collectively as “insurers”) that issue and sell
long-term care (LTC) insurance policies in Connecticut.
It requires the insurance commissioner to develop a minimum set of
affordable benefit options that insurers must offer to policyholders if
they file a premium rate increase of 20% or more for an individual or
group LTC policy.
By law, insurers filing for a rate increase of 20% or more must
spread the premium increase over at least three years. The bill also
prohibits them from filing an additional rate increase during this
period.
It also prohibits an insurer from issuing, delivering, renewing,
continuing, or amending an individual or group LTC policy on or after
January 1, 2022, unless that insurer is also authorized or licensed to sell
another line of insurance in Connecticut (e.g., health insurance).
Lastly, the bill makes technical and conforming changes.
*Senate Amendment “A” removes provisions in the underlying bill
allowing the attorney general to investigate and take action against an
LTC insurer that deliberately or recklessly underpriced a policy by
50% or more.
EFFECTIVE DATE: January 1, 2022
MINIMUM AFFORDABLE B ENEFIT OPTIONS 2021SB-01046-R01-BA.docx
Researcher: AR Page 2 5/21/21
Under the bill, the commissioner must develop and prescribe a
minimum set of affordable benefit options to be offered by LTC
insurers that file for rate increases of 20% or more. He must do so after
consulting with other state governments and conducting a nationwide
review. The bill (1) requires the commissioner to notify these insurers
of the minimum set of affordable benefit options and (2) authorizes
him to adopt implementing regulations.
By law, LTC insurers must give policyholders the option of
reducing their benefits to reduce their premium rate before
implementing a rate increase. Under the bill, insurers must also allow
policyholders to elect coverage reflecting the minimum set of
affordable benefit options. As with the option to reduce benefits in
existing law, insurers must (1) notify policyholders of this new option,
including a description of the minimum set of affordable benefit
options, and (2) allow policyholders at least 30 days to select new
coverage before they are deemed to have chosen to keep the existing
policy.
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable
Yea 18 Nay 0 (03/22/2021)