CT
Connecticut Senate Bill SB01278

Connecticut 2025 Regular Session

Connecticut Senate Bill SB01278 Compare Versions

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55 General Assembly Raised Bill No. 1278
66 January Session, 2025
77 LCO No. 4030
88
99
1010 Referred to Committee on AGING
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1313 Introduced by:
1414 (AGE)
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1818 AN ACT CONCERNING LONG -TERM CARE INSURANCE PREMIUM
1919 RATES.
2020 Be it enacted by the Senate and House of Representatives in General
2121 Assembly convened:
2222
2323 Section 1. Subparagraph (B) of subdivision (20) of subsection (a) of 1
2424 section 12-701 of the general statutes is repealed and the following is 2
2525 substituted in lieu thereof (Effective from passage and applicable to taxable 3
2626 years commencing on or after January 1, 2025): 4
2727 (B) There shall be subtracted therefrom: 5
2828 (i) To the extent properly includable in gross income for federal 6
2929 income tax purposes, any income with respect to which taxation by any 7
3030 state is prohibited by federal law; 8
3131 (ii) To the extent allowable under section 12-718, exempt dividends 9
3232 paid by a regulated investment company; 10
3333 (iii) To the extent properly includable in gross income for federal 11
3434 income tax purposes, the amount of any refund or credit for 12
3535 overpayment of income taxes imposed by this state, or any other state 13 Raised Bill No. 1278
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3737
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3939
4040 of the United States or a political subdivision thereof, or the District of 14
4141 Columbia; 15
4242 (iv) To the extent properly includable in gross income for federal 16
4343 income tax purposes and not otherwise subtracted from federal 17
4444 adjusted gross income pursuant to clause (x) of this subparagraph in 18
4545 computing Connecticut adjusted gross income, any tier 1 railroad 19
4646 retirement benefits; 20
4747 (v) To the extent any additional allowance for depreciation under 21
4848 Section 168(k) of the Internal Revenue Code for property placed in 22
4949 service after September 27, 2017, was added to federal adjusted gross 23
5050 income pursuant to subparagraph (A)(ix) of this subdivision in 24
5151 computing Connecticut adjusted gross income, twenty-five per cent of 25
5252 such additional allowance for depreciation in each of the four 26
5353 succeeding taxable years; 27
5454 (vi) To the extent properly includable in gross income for federal 28
5555 income tax purposes, any interest income from obligations issued by or 29
5656 on behalf of the state of Connecticut, any political subdivision thereof, 30
5757 or public instrumentality, state or local authority, district or similar 31
5858 public entity created under the laws of the state of Connecticut; 32
5959 (vii) To the extent properly includable in determining the net gain or 33
6060 loss from the sale or other disposition of capital assets for federal income 34
6161 tax purposes, any gain from the sale or exchange of obligations issued 35
6262 by or on behalf of the state of Connecticut, any political subdivision 36
6363 thereof, or public instrumentality, state or local authority, district or 37
6464 similar public entity created under the laws of the state of Connecticut, 38
6565 in the income year such gain was recognized; 39
6666 (viii) Any interest on indebtedness incurred or continued to purchase 40
6767 or carry obligations or securities the interest on which is subject to tax 41
6868 under this chapter but exempt from federal income tax, to the extent that 42
6969 such interest on indebtedness is not deductible in determining federal 43
7070 adjusted gross income and is attributable to a trade or business carried 44
7171 on by such individual; 45 Raised Bill No. 1278
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7575
7676 (ix) Ordinary and necessary expenses paid or incurred during the 46
7777 taxable year for the production or collection of income which is subject 47
7878 to taxation under this chapter but exempt from federal income tax, or 48
7979 the management, conservation or maintenance of property held for the 49
8080 production of such income, and the amortizable bond premium for the 50
8181 taxable year on any bond the interest on which is subject to tax under 51
8282 this chapter but exempt from federal income tax, to the extent that such 52
8383 expenses and premiums are not deductible in determining federal 53
8484 adjusted gross income and are attributable to a trade or business carried 54
8585 on by such individual; 55
8686 (x) (I) For taxable years commencing prior to January 1, 2019, for a 56
8787 person who files a return under the federal income tax as an unmarried 57
8888 individual whose federal adjusted gross income for such taxable year is 58
8989 less than fifty thousand dollars, or as a married individual filing 59
9090 separately whose federal adjusted gross income for such taxable year is 60
9191 less than fifty thousand dollars, or for a husband and wife who file a 61
9292 return under the federal income tax as married individuals filing jointly 62
9393 whose federal adjusted gross income for such taxable year is less than 63
9494 sixty thousand dollars or a person who files a return under the federal 64
9595 income tax as a head of household whose federal adjusted gross income 65
9696 for such taxable year is less than sixty thousand dollars, an amount 66
9797 equal to the Social Security benefits includable for federal income tax 67
9898 purposes; 68
9999 (II) For taxable years commencing prior to January 1, 2019, for a 69
100100 person who files a return under the federal income tax as an unmarried 70
101101 individual whose federal adjusted gross income for such taxable year is 71
102102 fifty thousand dollars or more, or as a married individual filing 72
103103 separately whose federal adjusted gross income for such taxable year is 73
104104 fifty thousand dollars or more, or for a husband and wife who file a 74
105105 return under the federal income tax as married individuals filing jointly 75
106106 whose federal adjusted gross income from such taxable year is sixty 76
107107 thousand dollars or more or for a person who files a return under the 77
108108 federal income tax as a head of household whose federal adjusted gross 78
109109 income for such taxable year is sixty thousand dollars or more, an 79 Raised Bill No. 1278
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113113
114114 amount equal to the difference between the amount of Social Security 80
115115 benefits includable for federal income tax purposes and the lesser of 81
116116 twenty-five per cent of the Social Security benefits received during the 82
117117 taxable year, or twenty-five per cent of the excess described in Section 83
118118 86(b)(1) of the Internal Revenue Code; 84
119119 (III) For the taxable year commencing January 1, 2019, and each 85
120120 taxable year thereafter, for a person who files a return under the federal 86
121121 income tax as an unmarried individual whose federal adjusted gross 87
122122 income for such taxable year is less than seventy-five thousand dollars, 88
123123 or as a married individual filing separately whose federal adjusted gross 89
124124 income for such taxable year is less than seventy-five thousand dollars, 90
125125 or for a husband and wife who file a return under the federal income tax 91
126126 as married individuals filing jointly whose federal adjusted gross 92
127127 income for such taxable year is less than one hundred thousand dollars 93
128128 or a person who files a return under the federal income tax as a head of 94
129129 household whose federal adjusted gross income for such taxable year is 95
130130 less than one hundred thousand dollars, an amount equal to the Social 96
131131 Security benefits includable for federal income tax purposes; and 97
132132 (IV) For the taxable year commencing January 1, 2019, and each 98
133133 taxable year thereafter, for a person who files a return under the federal 99
134134 income tax as an unmarried individual whose federal adjusted gross 100
135135 income for such taxable year is seventy-five thousand dollars or more, 101
136136 or as a married individual filing separately whose federal adjusted gross 102
137137 income for such taxable year is seventy-five thousand dollars or more, 103
138138 or for a husband and wife who file a return under the federal income tax 104
139139 as married individuals filing jointly whose federal adjusted gross 105
140140 income from such taxable year is one hundred thousand dollars or more 106
141141 or for a person who files a return under the federal income tax as a head 107
142142 of household whose federal adjusted gross income for such taxable year 108
143143 is one hundred thousand dollars or more, an amount equal to the 109
144144 difference between the amount of Social Security benefits includable for 110
145145 federal income tax purposes and the lesser of twenty-five per cent of the 111
146146 Social Security benefits received during the taxable year, or twenty-five 112
147147 per cent of the excess described in Section 86(b)(1) of the Internal 113 Raised Bill No. 1278
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151151
152152 Revenue Code; 114
153153 (xi) To the extent properly includable in gross income for federal 115
154154 income tax purposes, any amount rebated to a taxpayer pursuant to 116
155155 section 12-746; 117
156156 (xii) To the extent properly includable in the gross income for federal 118
157157 income tax purposes of a designated beneficiary, any distribution to 119
158158 such beneficiary from any qualified state tuition program, as defined in 120
159159 Section 529(b) of the Internal Revenue Code, established and 121
160160 maintained by this state or any official, agency or instrumentality of the 122
161161 state; 123
162162 (xiii) To the extent allowable under section 12-701a, contributions to 124
163163 accounts established pursuant to any qualified state tuition program, as 125
164164 defined in Section 529(b) of the Internal Revenue Code, established and 126
165165 maintained by this state or any official, agency or instrumentality of the 127
166166 state; 128
167167 (xiv) To the extent properly includable in gross income for federal 129
168168 income tax purposes, the amount of any Holocaust victims' settlement 130
169169 payment received in the taxable year by a Holocaust victim; 131
170170 (xv) To the extent properly includable in the gross income for federal 132
171171 income tax purposes of a designated beneficiary, as defined in section 133
172172 3-123aa, interest, dividends or capital gains earned on contributions to 134
173173 accounts established for the designated beneficiary pursuant to the 135
174174 Connecticut Homecare Option Program for the Elderly established by 136
175175 sections 3-123aa to 3-123ff, inclusive; 137
176176 (xvi) To the extent properly includable in gross income for federal 138
177177 income tax purposes, any income received from the United States 139
178178 government as retirement pay for a retired member of (I) the Armed 140
179179 Forces of the United States, as defined in Section 101 of Title 10 of the 141
180180 United States Code, or (II) the National Guard, as defined in Section 101 142
181181 of Title 10 of the United States Code; 143 Raised Bill No. 1278
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185185
186186 (xvii) To the extent properly includable in gross income for federal 144
187187 income tax purposes for the taxable year, any income from the discharge 145
188188 of indebtedness in connection with any reacquisition, after December 146
189189 31, 2008, and before January 1, 2011, of an applicable debt instrument or 147
190190 instruments, as those terms are defined in Section 108 of the Internal 148
191191 Revenue Code, as amended by Section 1231 of the American Recovery 149
192192 and Reinvestment Act of 2009, to the extent any such income was added 150
193193 to federal adjusted gross income pursuant to subparagraph (A)(xi) of 151
194194 this subdivision in computing Connecticut adjusted gross income for a 152
195195 preceding taxable year; 153
196196 (xviii) To the extent not deductible in determining federal adjusted 154
197197 gross income, the amount of any contribution to a manufacturing 155
198198 reinvestment account established pursuant to section 32-9zz in the 156
199199 taxable year that such contribution is made; 157
200200 (xix) To the extent properly includable in gross income for federal 158
201201 income tax purposes, (I) for the taxable year commencing January 1, 159
202202 2015, ten per cent of the income received from the state teachers' 160
203203 retirement system, (II) for the taxable years commencing January 1, 161
204204 2016, to January 1, 2020, inclusive, twenty-five per cent of the income 162
205205 received from the state teachers' retirement system, and (III) for the 163
206206 taxable year commencing January 1, 2021, and each taxable year 164
207207 thereafter, fifty per cent of the income received from the state teachers' 165
208208 retirement system or, for a taxpayer whose federal adjusted gross 166
209209 income does not exceed the applicable threshold under clause (xx) of 167
210210 this subparagraph, the percentage pursuant to said clause of the income 168
211211 received from the state teachers' retirement system, whichever 169
212212 deduction is greater; 170
213213 (xx) To the extent properly includable in gross income for federal 171
214214 income tax purposes, except for retirement benefits under clause (iv) of 172
215215 this subparagraph and retirement pay under clause (xvi) of this 173
216216 subparagraph, for a person who files a return under the federal income 174
217217 tax as an unmarried individual whose federal adjusted gross income for 175
218218 such taxable year is less than seventy-five thousand dollars, or as a 176 Raised Bill No. 1278
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222222
223223 married individual filing separately whose federal adjusted gross 177
224224 income for such taxable year is less than seventy-five thousand dollars, 178
225225 or as a head of household whose federal adjusted gross income for such 179
226226 taxable year is less than seventy-five thousand dollars, or for a husband 180
227227 and wife who file a return under the federal income tax as married 181
228228 individuals filing jointly whose federal adjusted gross income for such 182
229229 taxable year is less than one hundred thousand dollars, (I) for the taxable 183
230230 year commencing January 1, 2019, fourteen per cent of any pension or 184
231231 annuity income, (II) for the taxable year commencing January 1, 2020, 185
232232 twenty-eight per cent of any pension or annuity income, (III) for the 186
233233 taxable year commencing January 1, 2021, forty-two per cent of any 187
234234 pension or annuity income, and (IV) for the taxable years commencing 188
235235 January 1, 2022, and January 1, 2023, one hundred per cent of any 189
236236 pension or annuity income; 190
237237 (xxi) To the extent properly includable in gross income for federal 191
238238 income tax purposes, except for retirement benefits under clause (iv) of 192
239239 this subparagraph and retirement pay under clause (xvi) of this 193
240240 subparagraph, any pension or annuity income for the taxable year 194
241241 commencing on or after January 1, 2024, and each taxable year 195
242242 thereafter, in accordance with the following schedule, for a person who 196
243243 files a return under the federal income tax as an unmarried individual 197
244244 whose federal adjusted gross income for such taxable year is less than 198
245245 one hundred thousand dollars, or as a married individual filing 199
246246 separately whose federal adjusted gross income for such taxable year is 200
247247 less than one hundred thousand dollars, or as a head of household 201
248248 whose federal adjusted gross income for such taxable year is less than 202
249249 one hundred thousand dollars: 203
250250 T1
251251 Federal Adjusted Gross Income Deduction
252252 T2
253253 Less than $75,000 100.0%
254254 T3
255255 $75,000 but not over $77,499 85.0%
256256 T4
257257 $77,500 but not over $79,999 70.0%
258258 T5
259259 $80,000 but not over $82,499 55.0%
260260 T6 $82,500 but not over $84,999 40.0% Raised Bill No. 1278
261261
262262
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264264
265265 T7
266266 $85,000 but not over $87,499 25.0%
267267 T8
268268 $87,500 but not over $89,999 10.0%
269269 T9
270270 $90,000 but not over $94,999 5.0%
271271 T10
272272 $95,000 but not over $99,999 2.5%
273273 T11
274274 $100,000 and over 0.0%
275275
276276 (xxii) To the extent properly includable in gross income for federal 204
277277 income tax purposes, except for retirement benefits under clause (iv) of 205
278278 this subparagraph and retirement pay under clause (xvi) of this 206
279279 subparagraph, any pension or annuity income for the taxable year 207
280280 commencing on or after January 1, 2024, and each taxable year 208
281281 thereafter, in accordance with the following schedule for married 209
282282 individuals who file a return under the federal income tax as married 210
283283 individuals filing jointly whose federal adjusted gross income for such 211
284284 taxable year is less than one hundred fifty thousand dollars: 212
285285 T12
286286 Federal Adjusted Gross Income Deduction
287287 T13
288288 Less than $100,000 100.0%
289289 T14 $100,000 but not over $104,999 85.0%
290290 T15
291291 $105,000 but not over $109,999 70.0%
292292 T16
293293 $110,000 but not over $114,999 55.0%
294294 T17
295295 $115,000 but not over $119,999 40.0%
296296 T18
297297 $120,000 but not over $124,999 25.0%
298298 T19
299299 $125,000 but not over $129,999 10.0%
300300 T20
301301 $130,000 but not over $139,999 5.0%
302302 T21
303303 $140,000 but not over $149,999 2.5%
304304 T22 $150,000 and over 0.0%
305305
306306 (xxiii) The amount of lost wages and medical, travel and housing 213
307307 expenses, not to exceed ten thousand dollars in the aggregate, incurred 214
308308 by a taxpayer during the taxable year in connection with the donation 215
309309 to another person of an organ for organ transplantation occurring on or 216
310310 after January 1, 2017; 217 Raised Bill No. 1278
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315315 (xxiv) To the extent properly includable in gross income for federal 218
316316 income tax purposes, the amount of any financial assistance received 219
317317 from the Crumbling Foundations Assistance Fund or paid to or on 220
318318 behalf of the owner of a residential building pursuant to sections 8-442 221
319319 and 8-443; 222
320320 (xxv) To the extent properly includable in gross income for federal 223
321321 income tax purposes, the amount calculated pursuant to subsection (b) 224
322322 of section 12-704g for income received by a general partner of a venture 225
323323 capital fund, as defined in 17 CFR 275.203(l)-1, as amended from time to 226
324324 time; 227
325325 (xxvi) To the extent any portion of a deduction under Section 179 of 228
326326 the Internal Revenue Code was added to federal adjusted gross income 229
327327 pursuant to subparagraph (A)(xiv) of this subdivision in computing 230
328328 Connecticut adjusted gross income, twenty-five per cent of such 231
329329 disallowed portion of the deduction in each of the four succeeding 232
330330 taxable years; 233
331331 (xxvii) To the extent properly includable in gross income for federal 234
332332 income tax purposes, for a person who files a return under the federal 235
333333 income tax as an unmarried individual whose federal adjusted gross 236
334334 income for such taxable year is less than seventy-five thousand dollars, 237
335335 or as a married individual filing separately whose federal adjusted gross 238
336336 income for such taxable year is less than seventy-five thousand dollars, 239
337337 or as a head of household whose federal adjusted gross income for such 240
338338 taxable year is less than seventy-five thousand dollars, or for a husband 241
339339 and wife who file a return under the federal income tax as married 242
340340 individuals filing jointly whose federal adjusted gross income for such 243
341341 taxable year is less than one hundred thousand dollars, for the taxable 244
342342 year commencing January 1, 2023, twenty-five per cent of any 245
343343 distribution from an individual retirement account other than a Roth 246
344344 individual retirement account; 247
345345 (xxviii) To the extent properly includable in gross income for federal 248
346346 income tax purposes, for a person who files a return under the federal 249 Raised Bill No. 1278
347347
348348
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350350
351351 income tax as an unmarried individual whose federal adjusted gross 250
352352 income for such taxable year is less than one hundred thousand dollars, 251
353353 or as a married individual filing separately whose federal adjusted gross 252
354354 income for such taxable year is less than one hundred thousand dollars, 253
355355 or as a head of household whose federal adjusted gross income for such 254
356356 taxable year is less than one hundred thousand dollars, (I) for the taxable 255
357357 year commencing January 1, 2024, fifty per cent of any distribution from 256
358358 an individual retirement account other than a Roth individual 257
359359 retirement account, (II) for the taxable year commencing January 1, 2025, 258
360360 seventy-five per cent of any distribution from an individual retirement 259
361361 account other than a Roth individual retirement account, and (III) for 260
362362 the taxable year commencing January 1, 2026, and each taxable year 261
363363 thereafter, any distribution from an individual retirement account other 262
364364 than a Roth individual retirement account. The subtraction under this 263
365365 clause shall be made in accordance with the following schedule: 264
366366 T23
367367 Federal Adjusted Gross Income Deduction
368368 T24
369369 Less than $75,000 100.0%
370370 T25 $75,000 but not over $77,499 85.0%
371371 T26
372372 $77,500 but not over $79,999 70.0%
373373 T27
374374 $80,000 but not over $82,499 55.0%
375375 T28
376376 $82,500 but not over $84,999 40.0%
377377 T29
378378 $85,000 but not over $87,499 25.0%
379379 T30
380380 $87,500 but not over $89,999 10.0%
381381 T31
382382 $90,000 but not over $94,999 5.0%
383383 T32
384384 $95,000 but not over $99,999 2.5%
385385 T33 $100,000 and over 0.0%
386386
387387 (xxix) To the extent properly includable in gross income for federal 265
388388 income tax purposes, for married individuals who file a return under 266
389389 the federal income tax as married individuals filing jointly whose 267
390390 federal adjusted gross income for such taxable year is less than one 268
391391 hundred fifty thousand dollars, (I) for the taxable year commencing 269
392392 January 1, 2024, fifty per cent of any distribution from an individual 270 Raised Bill No. 1278
393393
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396396
397397 retirement account other than a Roth individual retirement account, (II) 271
398398 for the taxable year commencing January 1, 2025, seventy-five per cent 272
399399 of any distribution from an individual retirement account other than a 273
400400 Roth individual retirement account, and (III) for the taxable year 274
401401 commencing January 1, 2026, and each taxable year thereafter, any 275
402402 distribution from an individual retirement account other than a Roth 276
403403 individual retirement account. The subtraction under this clause shall 277
404404 be made in accordance with the following schedule: 278
405405 T34
406406 Federal Adjusted Gross Income Deduction
407407 T35 Less than $100,000 100.0%
408408 T36
409409 $100,000 but not over $104,999 85.0%
410410 T37
411411 $105,000 but not over $109,999 70.0%
412412 T38
413413 $110,000 but not over $114,999 55.0%
414414 T39
415415 $115,000 but not over $119,999 40.0%
416416 T40
417417 $120,000 but not over $124,999 25.0%
418418 T41
419419 $125,000 but not over $129,999 10.0%
420420 T42
421421 $130,000 but not over $139,999 5.0%
422422 T43 $140,000 but not over $149,999 2.5%
423423 T44
424424 $150,000 and over 0.0%
425425
426426 (xxx) To the extent properly includable in gross income for federal 279
427427 income tax purposes, for the taxable year commencing January 1, 2022, 280
428428 the amount or amounts paid or otherwise credited to any eligible 281
429429 resident of this state under (I) the 2020 Earned Income Tax Credit 282
430430 enhancement program from funding allocated to the state through the 283
431431 Coronavirus Relief Fund established under the Coronavirus Aid, Relief, 284
432432 and Economic Security Act, P.L. 116-136, and (II) the 2021 Earned 285
433433 Income Tax Credit enhancement program from funding allocated to the 286
434434 state pursuant to Section 9901 of Subtitle M of Title IX of the American 287
435435 Rescue Plan Act of 2021, P.L. 117-2; 288
436436 (xxxi) For the taxable year commencing January 1, 2023, and each 289
437437 taxable year thereafter, for a taxpayer licensed under the provisions of 290 Raised Bill No. 1278
438438
439439
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441441
442442 chapter 420f or 420h, the amount of ordinary and necessary expenses 291
443443 that would be eligible to be claimed as a deduction for federal income 292
444444 tax purposes under Section 162(a) of the Internal Revenue Code but that 293
445445 are disallowed under Section 280E of the Internal Revenue Code 294
446446 because marijuana is a controlled substance under the federal 295
447447 Controlled Substance Act; 296
448448 (xxxii) To the extent properly includable in gross income for federal 297
449449 income tax purposes, for the taxable year commencing on or after 298
450450 January 1, 2025, and each taxable year thereafter, any common stock 299
451451 received by the taxpayer during the taxable year under a share plan, as 300
452452 defined in section 12-217ss; 301
453453 (xxxiii) To the extent properly includable in gross income for federal 302
454454 income tax purposes, the amount of any student loan reimbursement 303
455455 payment received by a taxpayer pursuant to section 10a-19m; 304
456456 (xxxiv) Contributions to an ABLE account established pursuant to 305
457457 sections 3-39k to 3-39q, inclusive, not to exceed five thousand dollars for 306
458458 each individual taxpayer or ten thousand dollars for taxpayers filing a 307
459459 joint return; [and] 308
460460 (xxxv) To the extent properly includable in gross income for federal 309
461461 income tax purposes, the amount of any payment received pursuant to 310
462462 subsection (c) of section 3-122a; and 311
463463 (xxxvi) For the taxable year commencing January 1, 2025, and each 312
464464 taxable year thereafter, the amount of any premiums paid in the taxable 313
465465 year for a long-term care insurance policy issued pursuant to section 314
466466 38a-475, 38a-501, as amended by this act, or 38a-528, as amended by this 315
467467 act. 316
468468 Sec. 2. Subdivision (2) of subsection (b) of section 38a-501 of the 317
469469 general statutes is repealed and the following is substituted in lieu 318
470470 thereof (Effective July 1, 2025): 319
471471 (2) (A) Any insurance company, fraternal benefit society, hospital 320 Raised Bill No. 1278
472472
473473
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475475
476476 service corporation, medical service corporation or health care center 321
477477 that files a rate filing for an increase in premium rates for a long-term 322
478478 care policy that is for twenty per cent or more shall spread the increase 323
479479 over a period of not less than three years and not file a rate filing for an 324
480480 increase in premium rates for the long-term care policy during the 325
481481 period chosen. Such company, society, corporation or center shall use a 326
482482 periodic rate increase that is actuarially equivalent to a single rate 327
483483 increase and a current interest rate for the period chosen. 328
484484 (B) Prior to implementing a premium rate increase, each such 329
485485 company, society, corporation or center shall: 330
486486 (i) Notify its policyholders of such premium rate increase and make 331
487487 available to such policyholders the additional choice of reducing the 332
488488 policy benefits to reduce the premium rate or electing coverage that 333
489489 reflects the minimum set of affordable benefit options developed by the 334
490490 commissioner pursuant to section 38a-475a. Such notice shall include a 335
491491 description of such policy benefit reductions and minimum set of 336
492492 affordable benefit options. The premium rates for any benefit reductions 337
493493 shall be based on the new premium rate schedule; 338
494494 (ii) Provide policyholders not less than thirty calendar days to elect a 339
495495 reduction in policy benefits or coverage that reflects the minimum set of 340
496496 affordable benefit options developed by the commissioner pursuant to 341
497497 section 38a-475a; and 342
498498 (iii) Include a statement in such notice that if a policyholder fails to 343
499499 elect a reduction in policy benefits or coverage that reflects the 344
500500 minimum set of affordable benefit options developed by the 345
501501 commissioner pursuant to section 38a-475a by the end of the notice 346
502502 period and has not cancelled the policy, the policyholder will be deemed 347
503503 to have elected to retain the existing policy benefits. 348
504504 (C) Prior to implementing a premium rate increase exceeding ten per 349
505505 cent, each such company, society, corporation or center shall hold a 350
506506 public hearing on such rate increase. Policyholders shall be provided 351
507507 notice of the date and time of such hearing not less than fourteen days 352 Raised Bill No. 1278
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509509
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511511
512512 in advance of such date. 353
513513 Sec. 3. Subdivision (2) of subsection (b) of section 38a-528 of the 354
514514 general statutes is repealed and the following is substituted in lieu 355
515515 thereof (Effective July 1, 2025): 356
516516 (2) (A) Any insurance company, fraternal benefit society, hospital 357
517517 service corporation, medical service corporation or health care center 358
518518 that files a rate filing for an increase in premium rates for a long-term 359
519519 care policy that is for twenty per cent or more shall spread the increase 360
520520 over a period of not less than three years and not file a rate filing for an 361
521521 increase in premium rates for the long-term care policy during the 362
522522 period chosen. Such company, society, corporation or center shall use a 363
523523 periodic rate increase that is actuarially equivalent to a single rate 364
524524 increase and a current interest rate for the period chosen. 365
525525 (B) Prior to implementing a premium rate increase, each such 366
526526 company, society, corporation or center shall: 367
527527 (i) Notify its certificate holders of such premium rate increase and 368
528528 make available to such certificate holders the additional choice of 369
529529 reducing the policy benefits to reduce the premium rate or electing 370
530530 coverage that reflects the minimum set of affordable benefit options 371
531531 developed by the commissioner pursuant to section 38a-475a. Such 372
532532 notice shall include a description of such policy benefit reductions and 373
533533 minimum set of affordable benefit options. The premium rates for any 374
534534 benefit reductions shall be based on the new premium rate schedule; 375
535535 (ii) Provide certificate holders not less than thirty calendar days to 376
536536 elect a reduction in policy benefits or coverage that reflects the 377
537537 minimum set of affordable benefit options developed by the 378
538538 commissioner pursuant to section 38a-475a; and 379
539539 (iii) Include a statement in such notice that if a certificate holder fails 380
540540 to elect a reduction in policy benefits or coverage that reflects the 381
541541 minimum set of affordable benefit options developed by the 382
542542 commissioner pursuant to section 38a-475a by the end of the notice 383 Raised Bill No. 1278
543543
544544
545545 LCO 4030 15 of 15
546546
547547 period and has not cancelled the policy, the certificate holder will be 384
548548 deemed to have elected to retain the existing policy benefits. 385
549549 (C) Prior to implementing a premium rate increase exceeding ten per 386
550550 cent, each such company, society, corporation or center shall hold a 387
551551 public hearing on such rate increase. Policyholders shall be provided 388
552552 notice of the date and time of such hearing not less than fourteen days 389
553553 in advance of such date. 390
554554 This act shall take effect as follows and shall amend the following
555555 sections:
556556
557557 Section 1 from passage and
558558 applicable to taxable years
559559 commencing on or after
560560 January 1, 2025
561561 12-701(a)(20)(B)
562562 Sec. 2 July 1, 2025 38a-501(b)(2)
563563 Sec. 3 July 1, 2025 38a-528(b)(2)
564564
565565 AGE Joint Favorable C/R INS
566-INS Joint Favorable
567566