Caps rate increases for long-term care insurance policies at the lesser of the consumer price index or five percent, measured annually
SB912 will have significant implications for the long-term care insurance market in Missouri. With the establishment of stricter regulations on preexisting conditions, insurers will be required to adhere to specific definitions and waiting periods, which should enhance coverage availability for those with prior health concerns. Additionally, the bill mandates that premium increases cannot exceed the lesser of the Consumer Price Index changes or five percent annually. These protections aim to safeguard policyholders against exorbitant rate increases, making long-term care insurance more affordable and accessible.
Senate Bill 912 aims to amend regulations related to long-term care insurance in Missouri. The bill's primary focus is on enhancing consumer protections by establishing standard conditions under which long-term care insurance policies can be offered and maintained. Specifically, it proposes to limit the conditions under which insurers can cancel, non-renew, or terminate policies, ensuring that such actions cannot be based solely on the age or decline in health of the insured individual. This provision seeks to provide stability for policyholders, particularly as they age or experience health issues.
However, there are notable points of contention associated with SB912. Proponents argue that such regulations are necessary to protect consumers from unfair practices and ensure that individuals can maintain their coverage without fear of losing it due to age or health changes. Conversely, some insurance companies may argue that these regulations could limit their operational flexibility and potentially lead to increased premiums across the board. The balance between protecting consumers and maintaining a sustainable insurance market will be a key point of debate as this bill advances through the legislative process.