An Act Concerning Long-term Care Insurance Premium Rates.
Impact
If passed, HB 05062 would amend current statutes around long-term care insurance, potentially reshaping the landscape of long-term care financing in the state. By implementing policies that require advanced notice of premium increases and public hearings on rate hike requests, the bill aims to empower consumers and foster a more informed decision-making process. The introduction of a tax credit for premiums may encourage more individuals to invest in long-term care insurance, thus providing them with more manageable options for future healthcare needs.
Summary
House Bill 05062, also known as An Act Concerning Long-term Care Insurance Premium Rates, seeks to alleviate the financial burden associated with rising long-term care insurance premiums. The legislation proposes several measures to address this issue, which includes establishing a tax credit for individuals purchasing long-term care insurance policies and enhancing the transparency of premium rate increases through mandatory public hearings. The intent is to create a more supportive environment for policyholders who may be challenged by escalating costs of long-term care coverage.
Contention
Despite its intention to aid consumers, there may be concerns expressed by insurance companies regarding the feasibility of public hearings for every proposed rate increase, potentially leading to bureaucratic delays. Additionally, the requirement for advanced notice may disrupt standard practices within the industry, leading to pushback from insurance providers who may fear loss of flexibility in setting their premiums. As the bill progresses, discussions will likely center around balancing consumer protections with the operational realities of insurance providers.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.