Senate committee hears pleas to let long‑term care policyholders lower inflation factor to keep coverage

A Minnesota Senate committee on program integrity heard emotional testimony about rising long‑term care insurance premiums and voted to send the sponsor's bill to the Commerce Committee for further consideration.

Jeff Fryer of Morehead, who testified he bought a long‑term care partnership policy in 2010, told senators that a recent renewal quoted him $8,268 a year. "If we were able to drop into a one‑percent inflation factor, that premium would drop to $5,607," Fryer said, citing a nearly $2,660 annual difference that he said would determine whether he and his wife can afford to keep coverage.

The bill, recorded in the hearing as "Senate File 3484 as amended," aims to allow some policyholders with older partnership‑eligible policies to move to lower compound inflation options (for example from 3% to 1% or 2%). The sponsor said the change was intended to keep people insured and avoid future reliance on Medicaid. Counsel and Commerce staff in the hearing packet said they do not expect a material fiscal impact and described it as largely fiscally neutral.

Senators questioned how the partnership program interacts with asset‑protection rules under Minnesota law and asked whether switching inflation factors would preserve partnership status. Fryer and members discussed lifetime policy limits and the protection that partnership designation provides: "The partnership allows you increased asset protection," Fryer said during questions.

After the testimony and a brief member exchange, a committee member moved the bill and an author's amendment. The committee approved the motion by voice vote and referred the measure to the Commerce Committee for further review.

What happens next: the Commerce Committee will receive the bill for technical review and fiscal analysis before any floor action; the author invited other senators to sign on as coauthors as the measure proceeds.