Researcher: ND Page 1 3/27/25
OLR Bill Analysis
SB 1278
AN ACT CONCERNING LONG -TERM CARE INSURANCE PREMIUM
RATES.
SUMMARY
This bill creates a personal income tax deduction for long-term care
(LTC) insurance premiums. It allows taxpayers to reduce their
Connecticut adjusted gross income by the amount of any LTC insurance
premiums they paid in the taxable year.
Under the bill, eligible premiums are those for individual or group
LTC insurance policies that provide benefits for treating an injury,
illness, or loss of functional capacity in a setting other than an acute care
hospital (e.g., a nursing home or an insured’s home). An LTC policy
does not include a policy that primarily provides Medicare
supplemental coverage, disability income protection coverage, or major
medical coverage, among other exclusions.
The bill also requires LTC insurers (i.e. insurers, HMOs, fraternal
benefit societies, and hospital or medical service corporations), before
implementing a premium rate increase of more than 10%, to hold a
public hearing and notify policyholders about the hearing date and time
at least 14 days in advance.
EFFECTIVE DATE: Upon passage and applicable to taxable years
beginning on or after January 1, 2025, for the tax deduction and July 1,
2025, for the public hearing requirement.
BACKGROUND
Related Bill
sSB 1269, favorably reported by the Insurance and Real Estate
Committee, creates a personal income tax credit for certain taxpayers
who make premium payments on LTC insurance policies. The credit 2025SB-01278-R000284-BA.DOCX
Researcher: ND Page 2 3/27/25
equals 20% of LTC premiums paid in the tax year by an eligible taxpayer
who is insured under the policy.
COMMITTEE ACTION
Aging Committee
Joint Favorable Change of Reference - INS
Yea 13 Nay 0 (03/04/2025)
Insurance and Real Estate Committee
Joint Favorable
Yea 13 Nay 0 (03/11/2025)