Minnesota enacts new long-term care insurance regulations effective January 2026

Minnesota's Senate Bill 2216, introduced on April 23, 2025, aims to reshape the landscape of long-term care insurance and individual health plans in the state. The bill introduces stringent regulations for insurers, emphasizing consumer protection and ensuring that health plans are guaranteed renewable without penalizing individuals based on their health status or claims history.

A key provision of the bill mandates that health carriers must offer guaranteed renewability for individual health plans, preventing them from denying renewal based on a policyholder's claims experience. This move is designed to provide stability and security for Minnesota residents, particularly as they age or face health challenges. Additionally, the bill imposes significant penalties for insurers that violate these regulations, with fines reaching up to three times the commissions paid for each policy involved in a violation, or a maximum of $10,000.

The bill has sparked notable debates among lawmakers and stakeholders. Proponents argue that these measures are essential for protecting vulnerable populations, particularly seniors who rely on long-term care insurance. Critics, however, express concerns about the potential financial burden on insurers, which could lead to higher premiums for consumers.

As the bill progresses, its implications could be far-reaching. Experts suggest that if passed, it could enhance access to long-term care for many Minnesotans, but may also prompt insurers to reevaluate their pricing strategies. The bill is set to take effect on January 1, 2026, and its future will be closely monitored as it moves through the legislative process.