AN ACT CONCERNING LONG-TERM CARE INSURANCE AND ELIGIBILITY FOR STATE CONTRACTS.

HB 7226 requires insurers to provide clear advance notice to policyholders about potential premium increases exceeding 10% and hold public hearings for such requests. It mandates that insurers maintain a 60% minimum loss ratio (premiums collected vs. claims paid) and spread large rate hikes (20%+) over at least three years, while offering policyholders options to reduce benefits or choose more affordable coverage. The bill also links eligibility for state contracts (over $100,000 annually) to insurers’ compliance with these rules, requiring bidders to certify no recent violations of the law. These provisions directly affect long-term care policyholders through enhanced transparency and insurers through stricter pricing and reporting requirements.