OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-7226
AN ACT CONCERNING LONG -TERM CARE INSURANCE AND
ELIGIBILITY FOR STATE CONTRACTS.
Primary Analyst: JS 4/9/25
Contributing Analyst(s): WL
Reviewer: NB
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Insurance Dept. IF - Cost 70,700 137,600
Note: IF=Insurance Fund
Municipal Impact: None
Explanation
The bill makes changes regarding long-term care insurance and state
contracting, which result in a cost to the Insurance Fund of $70,700 in
FY 26 and $137,600 in FY 27 and annually thereafter.
Section 1 requires the Insurance Department to hold a public hearing
when a long-term care insurer is requesting a rate increase above 10%,
resulting in a cost to the Insurance Fund of $70,700 in FY 26 and $137,600
in FY 27 and annually thereafter. It is anticipated that the department
will need to hold approximately 40 public hearings a year, and handling
this volume will require one new staff position.
The department is expected to hire one full-time Paralegal with an
annualized salary of $75,000 and fringe benefits of $62,400. FY 26
personnel costs are expected to be $37,500 and $31,200 respectively,
reflecting the section's January 1, 2026 effective date. Other expenses for
the new position are expected to total $2,000 in FY 26 for a laptop and
related supplies, and $200 annually beginning in FY 27 for office
supplies. 2025HB-07226-R000650-FN.DOCX Page 2 of 2
Sections 2 and 3 require long-term care insurers to make certain
procedural changes that have no fiscal impact to the state.
Section 4 prohibits the state from entering into a contract with an
insurer unless they have met certain requirements which results in no
fiscal impact to the state.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.