An Act Concerning The Regulation Of Long-term Care Insurance Premium Costs.
Impact
The proposed changes in SB00029 are intended to enhance transparency and accountability within the long-term care insurance industry. By requiring that potential rate increases are communicated clearly to policyholders and that public hearings are held, the bill seeks to empower consumers and perhaps mitigate sudden steep rises in premium costs. Moreover, the introduction of tax credits and deductions for individuals purchasing long-term care insurance could incentivize more residents to secure coverage, subsequently increasing the number of insured individuals and reducing the state’s burden for care.
Summary
SB00029 aims to regulate the costs of long-term care insurance premiums by establishing several mechanisms aimed at protecting consumers. The bill mandates the Insurance Department to evaluate an alternative pool for long-term care insurance policyholders, which could potentially provide more options and leverage for consumers in managing their long-term care needs. Additionally, it requires the department to hold public hearings concerning any requests for premium rate increases that surpass a certain threshold, specifically set at seven percent, ensuring that such increases are justified and transparent to policyholders.
Contention
One notable point of contention surrounding SB00029 could stem from the insurance industry’s perspective on these regulatory measures. While consumer protection advocates may laud the enhanced oversight, insurers might argue that stricter regulations could limit their ability to adjust rates based on market conditions and risk assessments, ultimately leading to reduced options or increased costs for consumers in the long run. The establishment of a task force to study the long-term care insurance industry may also indicate acknowledgment of the complexities involved in balancing regulation with a viable business model for insurers.
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.