Michigan state Rep. Brandon Dillon, D-Mich., has introduced a measure, Michigan House Bill 5295, that could affect how long-term care insurance (LTCI) carriers go about increasing rates.
If enacted and implemented as written, the bill would limit LTCI carriers to increasing premium rates to an amount equal to or less than “the cumulative change in the consumer price index for medical care” as reported by the federal Bureau of Labor Statistics.
The change in Michigan LTCI rate statutes would take effect July 1.
Dillon has lined up 7 cosponsors.
H.B. 5295 would amend existing Michigan statutes that describe the kinds of benefits an LTCI carrier must offer a policyholder if the carrier imposes a substantial premium increase and the policyholder declines to pay the higher rates.
The statutes, which have applied to both individual and group LTCI policies issued without nonforfeiture benefits since June 2007, create a definition of “substantial premium increase” that decreases for older insureds.