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repealed and the following is substituted in lieu thereof (Effective January 18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