The passage of SM26 would lead to a detailed analysis of the current state of long-term care insurance in New Mexico, focusing specifically on the premiums and benefits offered under these policies. By commissioning this study, the state aims to assess the effectiveness of current regulations and practices concerning long-term care coverage. The findings, expected to be reported to various legislative committees by December 2022, are intended to guide potential policy changes that would enhance consumer protection and manage the affordability of long-term care insurance.
Summary
Senate Memorial 26 (SM26), introduced by Senator Gay G. Kernan, requests the Office of Superintendent of Insurance to conduct a comprehensive study on long-term care insurance and its affordability for New Mexico residents. This bill seeks to address growing concerns over the increasing costs associated with long-term care policies, which typically cover services for activities of daily living, such as bathing and dressing, but are significantly more expensive than traditional health insurance. The memorial is aimed at understanding how rate increases in premiums are impacting consumers and finding solutions for providing relief.
Contention
While the bill does not seem to have major points of contention highlighted within the text, the necessity of such a comprehensive study itself may indicate underlying tension regarding the accessibility and fairness of long-term care insurance in the state. Advocates for consumers may support the bill as a significant step towards tackling high insurance rates, while some insurance providers could view it as an undue regulatory burden that might affect their operations and pricing strategies. This dynamic suggests that debates may arise regarding balancing consumer interests and the insurance industry’s capacity to provide coverage.
An Act Concerning The Regulation Of Long-term Care Insurance, Reports Concerning Such Insurance And A Limited Performance Audit Of The Connecticut Partnership For Long-term Care.