HB 950 — An Act amending the act of May 17, 1921 (P.L.682, No.284), known as The Insurance Company Law of 1921, in long-term care, providing for premium rate increases.

PRINTER'S NO.      976

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 950
                                               Session of
                                                 2025

     INTRODUCED BY MEHAFFIE, GUENST, HANBIDGE, NEILSON AND PROBST,
        MARCH 17, 2025

     REFERRED TO COMMITTEE ON INSURANCE, MARCH 17, 2025


                                    AN ACT
 1   Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An
 2      act relating to insurance; amending, revising, and
 3      consolidating the law providing for the incorporation of
 4      insurance companies, and the regulation, supervision, and
 5      protection of home and foreign insurance companies, Lloyds
 6      associations, reciprocal and inter-insurance exchanges, and
 7      fire insurance rating bureaus, and the regulation and
 8      supervision of insurance carried by such companies,
 9      associations, and exchanges, including insurance carried by
10      the State Workmen's Insurance Fund; providing penalties; and
11      repealing existing laws," in long-term care, providing for
12      premium rate increases.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    The act of May 17, 1921 (P.L.682, No.284), known
16   as The Insurance Company Law of 1921, is amended by adding a
17   section to read:
18      Section 1105.1.    Premium Rate Increases.--(a)     The premium
19   charged to an insured under a long-term care insurance policy
20   may not increase due to either:
21      (1)    the increasing age of the insured; or
22      (2)    the duration the insured has been covered under the
23   policy.
 1      (b)   An insurer may not charge a renewal premium rate for a
 2   long-term care insurance policy by an increase greater than
 3   fifteen per centum (15%) of any premium charged for the policy
 4   during the preceding twelve months.
 5      (c)   Except as provided in subsection (d), the commissioner
 6   shall disapprove a premium rate increase under this section if:
 7      (1)   the benefits provided are not reasonable in relation to
 8   the premium charged;
 9      (2)   the proposed premium rate is excessive, unjustified or
10   unfairly discriminatory; or
11      (3)   for a given policy form, the premium rate applicable to
12   any particular policy issued on the policy form is increased by
13   an amount exceeding an annual rate cap of fifteen per centum
14   (15%).
15      (d)   With approval of the commissioner, an insurer may
16   increase a renewal premium greater than fifteen per centum (15%)
17   upon a showing that a larger increase is necessary because of
18   utilization of policy benefits in excess of the expected rate.
19      Section 2.   This act shall take effect in 60 days.




20250HB0950PN0976                  - 2 -