An Act To Require Notification of Proposed Rate Increases for Long-term Care Policies
Maine Legislature, Session 129, LD 0005
Committee Amendment CA_A_H25 (House)
Amends: 24-A MRSA §5084

COMMITTEE AMENDMENT .. ;4" to H.P. 6, L.D. 5, Bill, "An Act To Require 
Notification of Proposed Rate Increases for Long-term Care Policies" 
Amend the bill by strildng out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 24-A MRSA §5084 is enacted to read: 
§5084. Notice to policyholders of rate increase 
1. Notice. An insurer shall notify a policyholder of a long-term care insurance 
policy issued in accordance with this chapter or chapter 68 of a proposed premium rate 
increase that affects the policyholder no' later than 30 days after the filing by the insurer 
of the premium rate increase. An insurer shall provide written notice by first-class mail to 
the last lmown mailing address of all affected individual and group policyholders and 
others who arc directly billed for group coverage. The notice must: 
A. Show the proposed rate: 
B. State that the rate is subject to regulatory approval; 
C. Inform a policyholder of the policyholder's right to request a hearing pursuant to 
section 229; 
D. Inform a policyholder of the policyholder's right to provide written comments on 
the proposed rate increase to the bur~au: and 
E. Provide to the policyholder contact info1mation for the bureau, including the 
bureau's toll-free telephone number. 
2. Implementation of rate increase. An increase in a premium rate may not be 
implemented until approved by the bureau or until the effective date of the premium rate 
increase, whichever is later. 
Sec. 2. Appropriations and allocations. The following appropriations and 
allocations are made. 
COMMITTEE AMENDMENT 
·-~ 
COMMITTEE AMENDMENT" A" to H.P. 6, L.D. 5 
PROFESSIONAL AND FINANCIAL REGULATION, DEPARTMENT OF 
Insurance - Bureau of 0092 
Initiative: Provides allocations to the Department of Professional and Financial 
Regulation, Bureau of Insurance for costs associated with additional rate hearings. 
OTHER SPECIAL REVENUE FUNDS 
All Other 
OTI-IER SPECIAL REVENUE FUNDS TOTAL 
SUMMARY 
2019-20 
$11,100 
$11,100 
2020-21 
$14,800 
$14,800 
This amendment replaces the bill. The amendment changes the time frame for when 
written notice of a proposed long-term care insurance rate increase must be provided 
from no later than 10 business days to no later than 30 days after the filing of the 
proposed premium rate increase. The amendment clarifies that notice must be provided 
by the insurer to all affected individual and group policyholders and others who are 
directly billed for group coverage. The amendment also specifies that the notice must 
include certain information, including the proposed rate, information on the 
policyholder's right to request a hearing and submit written comments on the proposed 
rate and contact information for the Department of Professional and Financial Regulation, 
Bureau of Insurance. 
An increase in a premium rate may not be implemented until approved by the bureau 
or until the effective date of the premium rate increase, whichever is later. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 02/19/19 feae.. 
LD5 
LR393(02) 
An Act To Require Notification of Proposed Rate Increases for Long-term Care Policies 
Fiscal Note for Bill as Amended by Committee Amendment ,/J ( H- ;2 S) 
Committee: Health Coverage, Insurance and Financial Services 
Appropriations/Allocations 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY2019-20 
FY2020-21 
$11,100 
$14,800 
Projections 
FY2021-22 
$14,800 
Projections 
FY2022-23 
$14,800 
The bill includes Other Special Revenue Funds allocations to the Depa1tment of Professional and Financial 
Regulation of $11,100 in fiscal year 2019-20 and $14,800 in fiscal year 2020-21 to hold additional hearings on 
proposed rate increases as a result of this bill. This estimate assumes an additional 4 tate hearings annually, with an 
average cost of $3, 700 per hearing. The depattment already has resources sufficient to fund the additional allocations. 
LR0393(02) - Fiscal Note - Page 1 of I