AN ACT CONCERNING LONG-TERM CARE INSURANCE PREMIUM RATES.

Plain English Breakdown

The source confirms an income tax deduction is allowed but does not provide specific details on how to claim it or any limits.

Rules for Long-Term Care Insurance Rates and Notices

This law allows an income tax deduction for long-term care premiums, requires public hearings for rate increases over ten percent with advance notice to lawmakers and policyholders, and mandates warning buyers about the risk of future price hikes.

What This Bill Does

• Allows individuals to deduct long-term care insurance premiums from their state income taxes.
• Requires the Insurance Department to hold a public hearing if an insurer requests a rate increase greater than ten percent.
• Mandates that insurers give written notice of such hearings to policyholders at least fourteen days in advance.
• Orders the Insurance Department to notify relevant legislative committees about these hearings electronically at least fourteen days before they occur.
• Requires companies to provide written warning to individuals about the risk of future premium increases before selling or renewing a long-term care policy.

Who It Names or Affects

• Insurance companies, fraternal benefit societies, hospital service corporations, medical service corporations, and health care centers.
• People who hold or plan to purchase long-term care insurance policies in the state.
• The Insurance Department and specific committees of the General Assembly.

Terms To Know

Long-Term Care Premium

The amount of money a person pays regularly to keep their long-term care insurance active, which may now be deducted from state income taxes.

Public Hearing

A meeting held by the Insurance Department where officials review proposed rate increases that are more than ten percent.

Limits and Unknowns

• This law takes effect on January 1, 2027, so it does not apply to actions taken before that date.
• The official text does not specify the exact dollar amount or percentage limit for the income tax deduction.

Official Summary Text

To (1) allow an income tax deduction for long-term care insurance premiums, (2) require the Insurance Department to hold a public hearing for long-term care premium rate increase requests that exceed ten per cent, and (3) require that policyholders are provided advance notice of such hearing.

Current Bill Text

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General Assembly Substitute Bill No. 5304
February Session, 2026

AN ACT CONCERNING LONG-TERM CARE INSURANCE PREMIUM
RATES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective January 1, 2027) The Insurance Department 1
shall hold a public hearing on any long-term care premium rate increase 2
request that exceed s ten per cent. The Insurance Department shall 3
provide notice of any such hearing electronically to the joint standing 4
committees of the General Assembly having cognizance of matters 5
relating to insurance and aging not less than fourteen days in advance 6
of such hearing. Any insurance company, fraternal benefit society, 7
hospital service corporation, medical service corporation or health care 8
center that requests such premium rate increase shall provide each 9
policyholder with written notice of the date and time of such hearing 10
not less than fourteen days in advance of such date. 11
Sec. 2. (NEW) ( Effective January 1, 2027 ) No insurance company, 12
fraternal benefit society, hospital service corporation, medical service 13
corporation or health care center may deliver, issue for delivery, renew, 14
continue or amend any long -term care policy in this state on or after 15
January 1, 2027, unless such insurance company, fraternal benefit 16
society, hospital service corporation, medical service corporation or 17
health care center provides written notice to an individual prior to the 18
purchase of any long-term care policy of the risk of future premium rate 19
Substitute Bill No. 5304

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increases. 20
This act shall take effect as follows and shall amend the following
sections:

Section 1 January 1, 2027 New section
Sec. 2 January 1, 2027 New section

AGE Joint Favorable Subst.
APP Joint Favorable