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History
- Vetoed memo.281
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading rules cal.480
- Substituted for A10711
- Referred to insurance
- Delivered to assembly
- Passed senateVote 61–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.1286
Show 1 earlier action
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Directs the department of financial services to study and report upon the provision of long term care insurance coverage in this state
Assembly Floor Calendar · Sponsor Albert A. Stirpe
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to direct the department of financial services to study and report upon the provision of long term care insurance coverage in this state
Purpose
To review the long term care insurance market in this state.
Summary of provisions
Section 1 directs the department of financial services to study the long term care insurance market in New York.
Section 2 directs the superintendent to submit a report of the study's findings.
Section 3 is the effective date.
Existing law
Section 1117 of the Insurance Law.
Justification
The Health Insurance Association of America quotes the average nationwide cost of a nursing home to exceed $50,000 a year. Long term care insurance allows individuals to financially prepare for the possibility of needing home care, assisted living services, or nursing home care someday.
At the inception of long term care insurance, policies were priced using what are now recognized to be inaccurate actuarial assumptions for claims costs, lapses and investment returns. Nationwide, the cost of long term care insurance premiums has been increasing to address these inaccurate assumptions. Some insurers who once marketed long term care policies have closed this book of business because it is simply too costly. The American Association for Long Term Care Insurance reported nearly a 9% increase in its 2015 Long Term Care Insurance Price Index. In 2015, the Department of Financial Services approved roughly 50% rate increases to three insurance companies.
The rate setting must balance affordability as well as access. A number of policyholders are senior citizens, operating on a fixed income, who cannot afford significant increases, as well as individuals who chose to be financially responsible in planning for their futures by purchasing policies many years ago, who are now being penalized. At the same time, when the solvency of insurance companies is threatened by the increased costs, ensuring continued access to these products in the marketplace requires premium rate increases so more plans do not leave the market. This is of particular importance as our aging population is growing.
This legislation directs the department to review the actuarial assumptions and methodologies it uses in rate setting for long term care insurance, how New York is handling increases in the cost of long term care insurance, as the entire industry nationwide is experiencing the ramifications of faulty assumptions made years ago, and provide a plan for addressing this moving forward.
Legislative history
New bill. FISCAL IMPLICATIONS :
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.