CA SB1342

Requires long-term care insurance policies offered under the California Partnership for Long-Term Care Program to provide at least one lower-cost option with automatic benefit increases of 3% annually to protect against inflation, in addition to the existing 5% annual increase option.

Allows policyholders facing premium rate increases to reduce coverage while maintaining partnership certification by lowering inflation protection to 3% annual increases instead of the standard 5%.

Requires policies certified under alternative provisions (with $100+ daily per diem benefits and $73,000+ lifetime maximum) to provide minimum 3% annual automatic benefit increases for inflation protection.

Makes technical corrections to Insurance Code Section 10235.50 regarding reduction of inflation protection provisions and language updates in Welfare and Institutions Code Section 22005.1.

Declares the act an urgency statute effective immediately to provide financial relief to consumers facing rate increases.