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SB 187

AN ACT CONCERNING THE REGULATION OF PREMIUM RATES ON LONG-TERM CARE INSURANCE POLICIES.

2025 Regular Session Introduced by Tony Hwang

Connecticut bill SB 187 would require state insurance commissioner approval of long-term care insurance premium rates to protect consumers from excessive increases.

REF. TO JOINT COMM. ON Insurance and Real Estate
#insurancedepartment #insurancerates #longtermcareinsurance #publichearings
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Bill Summary · SB 187

Legislative bill overview

SB 187 would establish new regulatory controls over premium rates charged for long-term care insurance policies in Connecticut. The bill aims to protect consumers by subjecting rate increases and pricing structures to state insurance commissioner oversight and approval requirements. This represents an expansion of regulatory authority over an insurance product sector that has historically had significant pricing autonomy.

Why is this important

Long-term care insurance is a critical financial product for seniors planning for potential nursing home, assisted living, or in-home care costs, which can exceed $100,000 annually. Uncontrolled premium increases have caused many policyholders to drop coverage or face severe financial hardship, making rate regulation a consumer protection priority. Connecticut's approach could serve as a model for other states while potentially affecting insurers' willingness to offer or maintain these policies in the state.

Potential points of contention

  • Insurer market participation: Stricter rate regulations may discourage insurers from entering or remaining in Connecticut's market, potentially reducing consumer options and availability
  • Cross-subsidy effects: Rate controls that don't allow for full cost recovery could force insurers to raise rates on other products or concentrate coverage among lower-risk applicants
  • Implementation complexity: Defining "reasonable" rates requires actuarial expertise and ongoing monitoring, raising questions about regulatory capacity and potential delays in rate approvals affecting consumer access

Compiled from official sources — confirm details with the bill’s official record.

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