How HB 950 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill introduces restrictions on premium rate increases for long-term care insurance policies in Pennsylvania.

• Section 1105.1

  Section 1105.1. Premium Rate Increases.--(a) The premium charged to an insured under a long-term care insurance policy may not increase due to either: (1) the increasing age of the insured; or (2) the duration the insured has been covered under the policy. (b) An insurer may not charge a renewal premium rate for a long-term care insurance policy by an increase greater than fifteen per centum (15%) of any premium charged for the policy during the preceding twelve months. (c) Except as provided in subsection (d), the commissioner shall disapprove a premium rate increase under this section if: (1) the benefits provided are not reasonable in relation to the premium charged; (2) the proposed premium rate is excessive, unjustified or unfairly discriminatory; or (3) for a given policy form, the premium rate applicable to any particular policy issued on the policy form is increased by an amount exceeding an annual rate cap of fifteen per centum (15%). (d) With approval of the commissioner, an insurer may increase a renewal premium greater than fifteen per centum (15%) upon a showing that a larger increase is necessary because of utilization of policy benefits in excess of the expected rate.

  This section establishes rules prohibiting certain premium increases and mandates commissioner approval for larger increases.