Advocates for elderly target utility, insurance costs

Advocates for Connecticut's population of older adults are laying out their priorities for the upcoming legislative session, focusing largely on saving residents money on utility and insurance costs, as well as bringing down what they say are excessive costs for long-term care insurance.

A coalition of civilian older adults are targeting what they say are unfair premium hikes related to long-term care insurance.

Their proposals aim to end rate increases that they say have plagued policyholders for years by holding insurance companies responsible.

"While the industry and the Connecticut Insurance Department would have us believe this is a claim crisis, the truth is this is a premium crisis, created when the industry closed these policies to new business after only a few years, cutting off the ability to build the financial reserves needed to cover future liabilities," Newington resident David Schwartzer said in a statement.

"After years of inaction by the legislature, it is time to hold the industry responsible for their actions. Our proposed legislation provides substantial relief to the policyholders and shifts the financial burden back to the insurance industry," he said.

Schwartzer, Farmington resident Kenneth Kollmeyer, and Newington resident Jan Kritzman said they have been working since 2022 to bring relief to more than 100,000 long-term policyholders in Connecticut, most of whom are older adults. They say the policyholders are forced to choose between paying their rent or mortgage, buying groceries, or using months of their Social Security benefits to pay insurance costs.

Many policyholders, they say, are now paying between 200% and 400% or more from what they were originally charged when they purchased their policies.

Increases in long-term care insurance premiums are a national issue tied to how the policies were initially priced decades ago, said Mary Quinn, spokeswoman for the Connecticut Insurance Department.

"Over time, it was determined that many policies were underpriced due to limited data and incorrect assumptions about life expectancy, policy lapses and the cost and duration of care," she said.

This resulted in insurance companies throughout the country seeking rate increases that are authorized by the contracts to ensure benefits are able to be paid, Quinn said.

While "some policyholders have seen premiums rise significantly over time," higher costs, in most cases, are the result of a series of increases spread over many years rather than all at once, Quinn said.

"In Connecticut, no long-term care premium increase can take affect unless it is reviewed and approved by the (Insurance Department) commissioner following detailed actuarial analysis," she said.

State law includes protections, including a minimum lifetime loss ratio of 60% for individual policies and 65% for group long-term care policies; phased-in increases for larger rate changes; and required notice and reduced benefit options to help policyholders manage costs.

"We understand how stressful these increases can be, especially for people who have paid premiums for decades and depend on this coverage for peace of mind," Quinn said.

The Connecticut Insurance Department encourages anyone facing rate increases to contact their insurer, consult with an adviser they trust, or reach out the department directly for help explaining their options and protections, she said.

Meanwhile, AARP Connecticut said it aims to work with legislators on a variety of areas to help older residents when the state General Assembly opens Feb. 4.

These issues include:

Addressing the rising utility costs to ensure fair and affordable access to essential services, such as electricity and high-speed internet;

Expanding voting options for all residents;

Supporting family caregivers and access to affordable, high-quality health care for those receiving home care and in long-term care facilities;

Strengthening protections against consumer fraud, including cryptocurrency and gift card scams;

Ensuring prescription drug prices are reasonable, justified and accessible; and

Creating communities that help older adults live safely and independently as they age.

"AARP supports policies that ensure the availability and affordability of quality services, critical safety net programs, and strong consumer protections Connecticut residents depend on," AARP Connecticut Director Nora Duncan said.

"Issues that impact the pocketbook will once again be a major focus for our staff and volunteers in 2026 and we are ready to work with elected leaders and organizations from both sides of the aisle on legislation that will keep more money in the pockets of Connecticut's residents."