Connecticut lawmakers are revisiting long-term care insurance relief as policyholders report steep premium increases stretching back years.
The legislature’s Aging Committee introduced a bill aimed at easing pressure on residents with long-term care insurance, or LTCI.
The proposal would create a state tax deduction for LTCI premiums, require public hearings when insurers request rate hikes above 10%, and mandate advance public notice of those hearings.
Under the measure, eligible policyholders could deduct total annual LTCI premiums from state taxable income. The approach targets after-tax relief rather than direct rate intervention.
A similar proposal advanced last year but stalled after the nonpartisan Office of Fiscal Analysis projected a general fund revenue loss of $19.7 mn in fiscal 2026 and $20.2 mn the following year.
Rep. Mitch Bolinsky, R-Newtown, described the current language as a starting point likely to change during debate. Policyholders argue the framework falls short.
Judy Mandel, who bought her policy in 2004, testified that her annual premium rose from $1,170 to nearly $5,200, an increase approaching 400%. She has paid roughly $50,000 in cumulative premiums. Surrendering coverage would mean forfeiting that investment. Maintaining it strains household finances.
Other residents urged lawmakers to consider stronger measures, including rate caps and expanded financial disclosure requirements for insurers.
David Schwartzer of Newington said legislators should challenge both industry lobbying efforts and regulatory approvals that allowed repeated increases.
Nearly 100,000 Connecticut residents hold LTCI policies covering services such as in-home care, rehabilitation, assisted living and nursing facilities.
A 2025 investigation by the Connecticut Mirror found annual costs surged for many due to insurer miscalculations involving longevity trends, care inflation and utilization rates.
From January 2019 through October 2024, more than 17,000 policyholders experienced increases of 50% or more. Some cases reached 174%.
Major carriers including Genworth Financial, Metropolitan Life Insurance Company and Transamerica Life Insurance Company requested annual hikes for five consecutive years starting in 2019.
Large filings affect thousands at a time. In 2019, Genworth sought a 40% increase on more than 9,000 Connecticut policies. In 2021, Transamerica requested a 20% increase on 8,000 policies. The Connecticut Insurance Department approved both filings without modification.
According to Beinsure, LTCI pricing instability stems from long-duration liability assumptions embedded decades ago.
When those assumptions shift, regulators face limited options beyond staged increases or benefit reductions. Tax relief addresses affordability at the margin. It does not recalibrate actuarial reality.
Lawmakers now face a familiar tension: fiscal impact on the state versus financial strain on aging policyholders who built retirement plans around coverage that costs far more than projected.
