OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-1269
AN ACT CONCERNING LONG -TERM CARE INSURANCE.
Primary Analyst: CW 3/26/25
Contributing Analyst(s): AB
Reviewer: WL
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Revenue Serv., Dept. GF - Revenue
Loss
None 67.2 million
Revenue Serv., Dept. GF - Cost None 20,000
Insurance Dept. IF - Cost 45,000-
75,000
None
Note: IF=Insurance Fund; GF=General Fund
Municipal Impact: None
Explanation
The bill, which makes various changes to long-term care insurance
(LTC) policy laws, establishes a LTC premium tax credit, and requires
certain evaluations by the Insurance Department, results in (1) an
ongoing General Fund revenue loss of $67.2 million beginning in FY 27,
(2) a one-time Insurance Fund cost of $45,000 to $75,000 in FY 26 only,
and (3) a one-time General Fund cost to the Department of Revenue
Services (DRS) of $20,000 in FY 27 only.
LTC Tax Credit
Section 4 establishes a personal income tax credit of 20% of LTC
insurance premiums paid for resident filers with federal adjusted gross
income of less than $200,000. This results a (1) General Fund revenue
loss of $67.2 million in FY 27 and (2) one-time cost of $20,000 to the (DRS)
to implement tax form changes in FY 27 only. 2025SB-01269-R000283-FN.docx Page 2 of 2
Insurance Department Evaluations
Sections 1 and 5 require the Insurance Department to conduct two
evaluations by February 1, 2026: (1) an alternative pool for LTC
policyholders; and (2) the department's individual and group LTC
premium rate filing processes. The estimated costs are $30,000 to $50,000
and $15,000 to $25,000 for each evaluation, respectively. This results in
a one-time cost of $45,000 to $75,000 to the Insurance Fund in FY 26
associated with hiring a contractor to complete the evaluations.
The Out Years
The revenue impact identified above would continue into the future
subject to inflation in long-term care insurance premiums.
The cost impacts identified above are one-time in nature and do not
result in a fiscal impact in the out years.
Sources: AARP
CTMirror "Policyholders Press CT Lawmakers for Long-Term Care Insurance
Reform", 2/11/25