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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: January 4, 2017 09:46 AM
From: Representative Anthony M. DeLuca
To: All House members
Subject: Long Term Care Rate Increase Notification (HB 2400 of 2015)
In the near future, I plan to re-introduce legislation (HB 2400 of 2015) to address the outcry from senior citizens pertaining to the constant premium increases on long term care policies. Although we can’t address the actual increases of flexible premium products, we can at least attempt to offer seniors the courtesy of being notified when their long term care insurer is requesting a premium increase for the year ahead. The Pennsylvania Insurance Commissioner held a public hearing on March 10, 2016 to discuss this issue of long term care increases in premiums and one of the most common themes of consumer complaints is the lack of transparency for rate filings by insurers.

Consumers are asking, “Why can’t I be notified when my insurer wants to raise my premium rates up to 80 percent?”. The honest answer is that the insurers choose not to notify policy holders of requested rate filings because they are not required to do so. While the Department’s review process allows for comment before a rate is implemented, most consumers are not aware that a rate increase has been requested. I think that the least we can do for policy holders attempting to do the right thing by purchasing long term care insurance – is to notify them, when rate filings occur, before they are notified that their premium has already been increased. I am sure that many of my colleagues have been hearing from their constituents on the steady climb in long term care premiums that were already expensive when originally purchased.

I ask you to join me in co-sponsoring legislation that will finally require the issuer of a long term care insurance policy to notify the policy holder when submitting a filing to the department for a rate increase.

Introduced as HB338