On March 5, 2025, the Washington State Senate introduced Senate Bill 5291, aimed at enhancing the framework for supplemental long-term care insurance. This legislation seeks to address the growing need for accessible long-term care options as the population ages, ensuring that individuals have the necessary coverage to support their health and financial well-being.

The bill outlines several key provisions designed to promote public interest and protect consumers. It establishes standards for supplemental long-term care coverage, facilitating better understanding and comparison of benefits among consumers. Additionally, it aims to safeguard individuals insured under these policies from unfair sales practices, thereby enhancing consumer protection in the insurance market.

Senate Bill 5291 mandates that all supplemental long-term care insurance policies issued in Washington after May 1, 2026, must comply with the new standards set forth in the bill. This includes coverage that is marketed as supplemental long-term care or nursing home insurance. The legislation also clarifies that it does not supersede existing laws unless they conflict with the new provisions, specifically excluding Medicare supplement insurance regulations from its scope.

The bill is set to expire on July 1, 2027, unless further action is taken to extend its provisions. This temporary nature has sparked discussions among lawmakers regarding the potential need for ongoing evaluation of long-term care insurance practices in the state.

While the bill has garnered support for its consumer protection measures, it has also faced scrutiny from some industry stakeholders concerned about the regulatory burden it may impose. Proponents argue that the legislation is crucial for ensuring that individuals can make informed decisions about their long-term care options, while opponents caution that it could lead to increased costs for insurers, which may ultimately be passed on to consumers.

As the legislative process unfolds, experts suggest that the implications of Senate Bill 5291 could significantly impact the long-term care insurance landscape in Washington. If enacted, it may pave the way for more transparent and equitable practices in the industry, ultimately benefiting consumers who rely on these essential services. The Senate will continue to deliberate on the bill, with further discussions anticipated in the coming weeks.