A BILL to amend and reenact § 38.2-5206 of the Code of Virginia, relating to long-term care insurance; premium rate increases; regulations.
HB997 amends Virginia’s long-term care insurance rate-setting statute to place tighter limits on premium increases and to direct the State Corporation Commission to update its regulations accordingly. The bill requires the Commission’s regulations to include standards for initial filings and premium rate schedule increases, modeled on the NAIC long-term care insurance regulation, and it expressly caps cumulative premium increases at 250 percent of the original premium for any policy.
The bill also adds procedural protections for policyholders by requiring any approved capped increase to be spread over at least five years, during which no further rate increase requests may be made for that policy. It further bars additional increases once a policy has reached the 250 percent cumulative cap. The bill directs the Commission to promulgate implementing regulations by July 1, 2027, and specifies that the new regulatory cap on increases must be no more than 30 percent of the maximum increase allowed under current regulations, calculated using conditions existing on the request date without projecting future inflation or cost escalation during the phase-in period.
HB997 would amend § 38.2-5206 of the Code of Virginia, changing the regulatory framework for long-term care insurance premiums and limiting the State Corporation Commission’s discretion in approving rate increases. It would affect insurers offering long-term care policies in Virginia, policyholders—especially older adults and pre-retirement purchasers—and the Commission’s rulemaking and rate-review process. The bill would also require new regulations to be in place by July 1, 2027, creating a statutory mandate for implementation.
The available legislative history suggests cautious or limited support rather than strong controversy, but the bill did not advance and was continued to the next session in the Labor and Commerce Committee by voice vote. With no recorded floor votes or committee transcript excerpts, there is no detailed public record here of debate positions. The bill’s structure indicates a consumer-protection focus, likely appealing to policyholders concerned about affordability, while also imposing significant constraints on insurers and regulators.
The main point of contention is likely the balance between protecting consumers from steep long-term care premium hikes and preserving insurers’ ability to adjust rates to reflect claims experience, reserves, and funding gaps. Insurers may object to the hard 250 percent cumulative cap, the five-year spread requirement, and the instruction not to account for future inflation or cost escalation during the phase-in period. Consumer advocates and older policyholders would likely support these limits as a way to prevent unaffordable increases in a market often described as developing and experimental.