Virginia bill would limit long-term care insurance premium increases

Regulations would limit premium increases and when insurers may request them. These provisions concern long-term care insurance policies and their premium increases. The regulations would set a cap on increases insurers may request for approval. Each capped increase would be spread over at least five years, and no further increase could be requested during that period. No additional increase could be approved once past increases reach 250 percent of the policy's original premium.

The State Corporation Commission would issue regulations setting a limit on premium increases. The cap would apply to premium increases for long-term care insurance. The cap would be no more than 30 percent of the maximum increase allowed under current regulations on the request date. The calculation would use costs, assumptions, and funding gaps on that date, without counting inflation or rising costs during the phase-in. The regulations would have to take effect by July 1, 2027.