SF 3484
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 03/19/2026 09:06 a.m.
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A bill for an act
relating to human services; modifying inflation protection for long-term care
partnership policies; amending Minnesota Statutes 2024, section 62S.23,
subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 62S.23, subdivision 1, is amended to read:
Subdivision 1.
Inflation protection feature.
(a) No insurer may offer a long-term care
insurance policy unless the insurer also offers to the policyholder, in addition to any other
inflation protection, the option to purchase a policy that provides for benefit levels to increase
with benefit maximums or reasonable durations which are meaningful to account for
reasonably anticipated increases in the costs of long-term care services covered by the
policy. In addition to other options that may be offered, insurers must offer to each
policyholder, at the time of purchase, the option to purchase a policy with an inflation
protection feature no less favorable than one of the following:
(1) increases benefit levels annually in a manner so that the increases are compounded
annually at a rate not less than five percent;
(2) guarantees the insured individual the right to periodically increase benefit levels
without providing evidence of insurability or health status so long as the option for the
previous period has not been declined. The amount of the additional benefit shall be no less
than the difference between the existing policy benefit and that benefit compounded annually
at a rate of at least five percent for the period beginning with the purchase of the existing
benefit and extending until the year in which the offer is made; or
(3) covers a specified percentage of actual or reasonable charges and does not include
a maximum specified indemnity amount or limit.
(b) A long-term care partnership policy must provide the inflation protection described
in this subdivision. If the policy is sold to an individual who:
(1) has not attained age 61 as of the date of purchase, the policy must provide compound
annual inflation protection;
(2) has attained age 61, but has not attained age 76 as of such date, the policy must
provide some level of inflation protection; and
(3) has attained the age of 76 as of such date, the policy may, but is not required to,
provide some level of inflation protection.
new text begin (c) new text end Inflation protection for a long-term care partnership policy may not benew text begin :
new text end
new text begin (1) for coverage sold on or after July 1, 2015,new text end less thannew text begin :
new text end
new text begin (i)new text end one percent per yearnew text begin ;new text end or
new text begin (ii)new text end a rate based on changes in the Consumer Price Indexnew text begin ; or
new text end
new text begin
(2) for coverage sold before July 1, 2015, less than:
new text end
new text begin
(i) three percent per year;
new text end
new text begin
(ii) a rate based on changes in the Consumer Price Index; or
new text end
new text begin (iii) one percent per year if the policyholder requests a reduction to the inflation protection
ratenew text end .
The commissioner, however, may approve other types of inflation protection that comply
with this section and further the goals of the partnership program.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027, or upon federal approval,
whichever is later. The commissioner of human services shall notify the revisor of statutes
when federal approval is obtained.
new text end