Connecticut 2025 Regular Session

Connecticut House Bill HB07226 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 6217 1 of 5
	3	+	LCO No. 6217 1 of 5
4	4
5	5		General Assembly Raised Bill No. 7226
6	6		January Session, 2025
7	7		LCO No. 6217
8	8
9	9
10		-	Referred to Committee on GOVERNMENT
11		-	~~ADMINISTRATION~~ AND ELECTIONS
	10	+	Referred to Committee on GOVERNMENT ADMINISTRATION
	11	+	AND ELECTIONS
12	12
13	13
14	14		Introduced by:
15	15		(GAE)
	16	+
16	17
17	18
18	19
19	20		AN ACT CONCERNING LONG -TERM CARE INSURANCE AND
20	21		ELIGIBILITY FOR STATE CONTRACTS.
21	22		Be it enacted by the Senate and House of Representatives in General
22	23		Assembly convened:
23	24
24	25		Section 1. (NEW) (Effective January 1, 2026) The Insurance Department 1
25	26		shall hold a public hearing for long-term care premium rate increase 2
26	27		requests that exceed ten per cent. Any insurance company, fraternal 3
27	28		benefit society, hospital service corporation, medical service corporation 4
28	29		or health care center that requests such premium rate increase shall 5
29	30		provide each policyholder with advance written notice of the date and 6
30	31		time of such hearing not less than fourteen days in advance of such date. 7
31	32		Sec. 2. (NEW) (Effective January 1, 2026) No insurance company, 8
32	33		fraternal benefit society, hospital service corporation, medical service 9
33	34		corporation or health care center may deliver, issue for delivery, renew, 10
34	35		continue or amend any long-term care policy in this state on or after 11
35	36		January 1, 2026, unless such insurance company, fraternal benefit 12
36	37		society, hospital service corporation, medical service corporation or 13
37		-	health care center provides written notice to an individual prior to the 14 Raised Bill No. 7226
	38	+	health care center provides written notice to an individual prior to the 14
	39	+	Raised Bill No. 7226
38	40
39	41
40		-	LCO 6217 2 of 5
	42	+
	43	+	LCO No. 6217 2 of 5
41	44
42	45		purchase of any long-term care policy of the risk of future premium rate 15
43	46		increases. 16
44	47		Sec. 3. Subsection (b) of section 38a-501 of the general statutes is 17
45	48		repealed and the following is substituted in lieu thereof (Effective January 18
46	49		1, 2026): 19
47	50		(b) (1) No insurance company, fraternal benefit society, hospital 20
48	51		service corporation, medical service corporation or health care center 21
49	52		may deliver or issue for delivery any long-term care policy that has a 22
50	53		loss ratio of less than sixty per cent for any individual long-term care 23
51	54		policy. An issuer shall not use or change premium rates for a long-term 24
52	55		care policy unless the rates have been filed with and approved by the 25
53	56		commissioner. Any rate filings or rate revisions shall (A) demonstrate 26
54	57		that anticipated claims in relation to premiums when combined with 27
55	58		actual experience to date can be expected to comply with the loss ratio 28
56	59		requirement of this section, and (B) certify that the increase is necessary 29
57	60		to prevent a material risk of insolvency. A rate filing shall include the 30
58	61		factors and methodology used to estimate irrevocable trust values if the 31
59	62		policy includes an option for the elimination period specified in 32
60	63		subdivision (1) of subsection (a) of this section. 33
61	64		(2) (A) Any insurance company, fraternal benefit society, hospital 34
62	65		service corporation, medical service corporation or health care center 35
63	66		that files a rate filing for an increase in premium rates for a long-term 36
64	67		care policy that is for twenty per cent or more shall spread the increase 37
65	68		over a period of not less than three years and not file a rate filing for an 38
66	69		increase in premium rates for the long-term care policy during the 39
67	70		period chosen. Such company, society, corporation or center shall use a 40
68	71		periodic rate increase that is actuarially equivalent to a single rate 41
69	72		increase and a current interest rate for the period chosen. 42
70	73		(B) Prior to implementing a premium rate increase, each such 43
71	74		company, society, corporation or center shall: 44
72	75		(i) Notify its policyholders of such premium rate increase and make 45
73		-	~~available to such policyholders the additional choice of reducing the 46~~ Raised Bill No. 7226
	76	+	Raised Bill No. 7226
74	77
75	78
76		-	LCO 6217 3 of 5
77	79
	80	+	LCO No. 6217 3 of 5
	81	+
	82	+	available to such policyholders the additional choice of reducing the 46
78	83		policy benefits to reduce the premium rate or electing coverage that 47
79	84		reflects the minimum set of affordable benefit options developed by the 48
80	85		commissioner pursuant to section 38a-475a. Such notice shall include a 49
81	86		description of such policy benefit reductions and minimum set of 50
82	87		affordable benefit options. The premium rates for any benefit reductions 51
83	88		shall be based on the new premium rate schedule; 52
84	89		(ii) Provide policyholders not less than thirty calendar days to elect a 53
85	90		reduction in policy benefits or coverage that reflects the minimum set of 54
86	91		affordable benefit options developed by the commissioner pursuant to 55
87	92		section 38a-475a; and 56
88	93		(iii) Include a statement in such notice that if a policyholder fails to 57
89	94		elect a reduction in policy benefits or coverage that reflects the 58
90	95		minimum set of affordable benefit options developed by the 59
91	96		commissioner pursuant to section 38a-475a by the end of the notice 60
92	97		period and has not cancelled the policy, the policyholder will be deemed 61
93	98		to have elected to retain the existing policy benefits. 62
94	99		Sec. 4. (NEW) (Effective January 1, 2026) (a) As used in this section: 63
95	100		(1) "State agency" means any office, department, board, council, 64
96	101		commission, institution or other agency in the executive, legislative or 65
97	102		judicial branch of state government; 66
98	103		(2) "State contract" means an agreement or a combination or series of 67
99	104		agreements between a state agency and a person, firm or corporation, 68
100	105		having a total value of more than one hundred thousand dollars in a 69
101	106		calendar or fiscal year, for (A) a project for the construction, alteration 70
102	107		or repair of any public building or public work, (B) services, including, 71
103	108		but not limited to, consulting and professional services, (C) the 72
104	109		procurement of supplies, materials or equipment, (D) a lease, or (E) a 73
105	110		licensing arrangement. "State contract" does not include a contract 74
106	111		between a state agency or a quasi-public agency and a political 75
107	112		subdivision of the state; 76
108		-	~~(3) "Insurer" means any insurance company, fraternal benefit society, 77~~ Raised Bill No. 7226
	113	+	Raised Bill No. 7226
109	114
110	115
111		-	LCO 6217 4 of 5
112	116
	117	+	LCO No. 6217 4 of 5
	118	+
	119	+	(3) "Insurer" means any insurance company, fraternal benefit society, 77
113	120		hospital service corporation, medical service corporation or health care 78
114	121		center; and 79
115	122		(4) "Principals and key personnel" means officers, directors, 80
116	123		shareholders, members, partners and managerial employees. 81
117	124		(b) On and after October 1, 2025, no state agency shall execute a state 82
118	125		contract with an insurer unless such contract contains the representation 83
119	126		described in this section. 84
120	127		(c) Any principal or key personnel of the insurer submitting a bid or 85
121	128		proposal for a state contract shall represent that no such principals and 86
122	129		key personnel of the insurer, or agent of such insurer, has been found in 87
123	130		violation of section 1 or 2 of this act or subsection (b) of section 38a-501 88
124	131		of the general statutes, as amended by this act, during the immediately 89
125	132		preceding five years. 90
126	133		(d) Any bidder or proposer that does not agree to the representations 91
127	134		required under this section shall be rejected and the state agency shall 92
128	135		award the contract to the next highest ranked proposer or the next 93
129	136		lowest responsible qualified bidder or seek new bids or proposals. 94
130	137		(e) Each state agency shall include in the bid specifications or request 95
131	138		for proposals for a state contract a notice of the representation 96
132	139		requirements of this section. 97
133	140		(f) The Insurance Commissioner and the Commissioner of 98
134	141		Administrative Services shall enter into a memorandum of 99
135	142		understanding concerning the sharing of information to enable the 100
136	143		Commissioner of Administrative Services to verify a representation 101
137	144		made under this section. 102
138	145		This act shall take effect as follows and shall amend the following
139	146		sections:
140	147
141	148		Section 1 January 1, 2026 New section
142		-	Sec. 2 January 1, 2026 New section
143		-	Sec. 3 January 1, 2026 38a-501(b) Raised Bill No. 7226
	149	+	Raised Bill No. 7226
144	150
145	151
146		-	LCO 6217 5 of 5
147	152
	153	+	LCO No. 6217 5 of 5
	154	+
	155	+	Sec. 2 January 1, 2026 New section
	156	+	Sec. 3 January 1, 2026 38a-501(b)
148	157		Sec. 4 January 1, 2026 New section
149	158
150		-	GAE Joint Favorable
	159	+	Statement of Purpose:
	160	+	To: (1) Require a public hearing concerning long-term care premium
	161	+	rate increase requests in excess of ten per cent and insurers to notify
	162	+	policyholders of such hearing; (2) require notice to individuals of the
	163	+	risk of long-term care premium rate increases prior to the purchase of
	164	+	any long-term care policy; (3) require insurers to certify material risk of
	165	+	insolvency during the premium rate filing process; and (4) prohibit any
	166	+	insurer that violates the provisions of this act from entering into state
	167	+	contracts.
	168	+
	169	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	170	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	171	+	underlined.]
151	172