DeLuca bill would require rate-hike request notice for long-term care insurance
HARRISBURG, Oct. 12 – State Rep. Tony DeLuca, D-Allegheny, Democratic chairman of the House Insurance Committee, has introduced a bill which would require insurance companies to notify their long-term care policy holders when the companies request to raise their rates.
Current state law only requires insurance companies notify subscribers once the rate increase has gone into effect.
"Consumers deserve the right to know a rate increase has been requested before it takes effect," DeLuca said. "The bill would also give policy holders the right to file comments with the Insurance Department for a period of 30 days."
"Consumers expect to be notified of pending rate increases for most utilities which face government oversight, like home energy or water bills. They deserve the right to offer input on the cost increases planned for this critical insurance policy.
"I realized that this is a critical issue earlier this year when some insurance companies requested rate increase that would have more than doubled their rates. Consumers need to be aware of those potential increases before they are approved," DeLuca continued, "And they deserve the right to comment on the impact the proposed increase would have."
DeLuca expects his legislation will be referred to the House Insurance Committee for further consideration.