Long-term care insurers offer coverage choices before large rate increases

Before implementing a premium increase of 20% or more, issuers must give policyholders coverage choices. This applies to individual policyholders and group plan certificate holders when an issuer files for a premium increase of 20% or more. Issuers must spread the increase over at least three years and cannot file another increase for that policy during the chosen period. They must offer lower benefits or the commissioner's minimum affordable coverage options and allow at least 30 days to choose. If a policyholder does not choose or cancel, the policyholder is treated as keeping the current benefits. The notice and choices are required before the increase takes effect.

Issuers must report policy losses, and the commissioner must report those figures to lawmakers each year. Issuers report losses and paid claims for each long-term care policy issued in Connecticut; the commissioner's report covers individual and group policies. The commissioner's report must cover the previous three calendar years, identify policies precertified under state law, and use combined data that does not identify individuals. The commissioner prepares it with the Secretary of the Office of Policy and Management; both agencies must link to it on their websites. Insurers must file by May 1 each year. The commissioner must file the first report by October 1, 2027, and annually after that.

The commissioner may investigate suspected violations and take enforcement action after an investigation and hearing. These provisions apply to the listed insurers and other organizations that issue long-term care policies or certificates. After finding a violation through an investigation, the commissioner may order a correction plan, impose administrative remedies, or issue a penalty. Before the hearing ends, the commissioner may let the insurer submit a correction plan for approval, and may refer suspected violations to the Attorney General. The commissioner may investigate when there is reason to believe an organization is violating the rules; enforcement may follow an investigation and hearing.

The text sets minimum loss ratios for individual and group long-term care coverage and includes rules for reviewing rates. These rules cover individual and group long-term care policies; the group rule also covers certificates. Individual policies must meet a 60% loss ratio, and group policies must meet a 65% loss ratio. Individual policy rates must be filed with and approved by the commissioner; group policy rates must be filed, and insurers must annually certify continued compliance with the group loss-ratio rule. Section 1 and Section 3 take effect July 1, 2026.