OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-1278
AN ACT CONCERNING LONG -TERM CARE INSURANCE
PREMIUM RATES.
Primary Analyst: CW 3/25/25
Contributing Analyst(s): AB
Reviewer: WL
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Department of Revenue Services GF - Revenue
Loss
19.7 million 20.2 million
Department of Revenue Services GF - Cost Up to
75,000
None
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which establishes a personal income tax deduction for long-
term care insurance premiums, results in a (1) General Fund revenue
loss of $19.7 million in FY 26 and $20.2 million in FY 27, and (2) one-time
cost of up to $75,000 in FY 26 for programming updates to the CTax tax
administration system and myconneCT online portal, and for form
development.
The bill also requires long-term care insurers (i.e., private entities) to
hold a public hearing and notify policyholders about it before
implementing certain premium rate increases. There is no fiscal impact
to the state or municipalities from these provisions as they affect private
entities.
The Out Years
The annualized ongoing fiscal impact identified above would 2025SB-01278-R000284-FN.DOCX Page 2 of 2
continue into the future subject to inflation in long-term care insurance
premiums.
Sources: AARP
CTMirror "Policyholders Press CT Lawmakers for Long-Term Care Insurance
Reform", 2/11/25