O F F I C E O F L E G I S L A T I V E R E S E A R C H
P U B L I C A C T S U M M A R Y
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PA 21-150—SB 1046
Insurance and Real Estate Committee
AN ACT CONCERNING LO NG-TERM CARE INSURANCE
SUMMARY: This act requires the insurance commissioner to develop a
minimum set of affordable benefit options that long-term care (LTC) insurers
(i.e., insurers, HMOs, fraternal benefit societies, and hospital or medical service
corporations) 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 act 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 act makes technical and conforming changes.
EFFECTIVE DATE: January 1, 2022
MINIMUM AFFORDABLE B ENEFIT OPTIONS
Under the act, 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 act (1) requires the commissioner to notify
these insurers of the minimum set of affordable benefit options when they file a
covered rate increase 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 act, 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.