Bill to limit sudden long‑term care premium spikes carried over after regulator and insurer warnings
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Summary
HB997 would limit cumulative long‑term care premium increases and require phased implementations; the Bureau of Insurance warned caps could pressure initial pricing and raise solvency concerns, and insurers cited past insolvencies. The committee carried the bill to 2027 for further work.
Delegate Seibold framed HB997 as a targeted effort to protect older Virginians from erratic, large premium increases for long‑term care insurance. The bill would set limits on cumulative premium increases and require approved increases be phased in over multiple years to avoid destabilizing one‑year spikes.
Regulatory concerns: Dan Dumpus, deputy commissioner at the State Corporation Commission’s Bureau of Insurance, said caps could create upward pressure on initial pricing because actuaries would build in uncertainty. He stressed the bureau’s dual mandate to protect policyholders and the solvency of insurers and noted the bureau vets rate increases actuarially.
Stakeholder testimony: Policyholders and advocates described dramatic premium increases in individual cases and urged guardrails. Industry representatives, including the American Council of Life Insurers and AHIP, warned that earlier long‑term care insurer insolvencies and shrinking market participation increase the risk that caps could exacerbate market instability.
Outcome: After extended questioning and public comment, the subcommittee carried HB997 over to the 2027 session to allow more analysis and stakeholder work.
Who spoke: Delegate Seibold (patron), Dan Dumpus (Bureau of Insurance), Patrick Cushing (ACLI), Jeff Palmore (AHIP), multiple policyholders and advocates who provided examples of large premium increases.