Long-Term Health Care Markets Development Act

Summary

Long-Term Health Care Markets Development Act - Title I: Tax-Free Withdrawals from IRA's Permitted for Payment of Long-Term Care Insurance Premiums - Amends the Internal Revenue Code to exclude from gross income any distribution from an individual retirement plan if: (1) the payee has attained age 59 1/2 on or before the date of the distribution; and (2) the distribution is used to pay premiums for an insurance policy covering at least 12 months of medically necessary care for the payee or a spouse meeting the same 59 1/2 year age requirement. Title II: Employers Encouraged to Offer Higher Deductibles on Employer-Provided Group Health Insurance - Amends the Internal Revenue Code to empower the trustee of an eligible individual retirement account (IRA) maintained for the benefit of an employee electing employee group health insurance coverage under a qualified high-deductible option to extend credit to the employee to pay certified medical expenses. Uses the IRA assets as security for such credit, which is subject to specified limits. Authorizes credit only in connection with plans under which the employer contributes to the employee's IRA the premium savings resulting from the employee's choice of a high deductible health care option. Title III: Elimination of Certificate of Need Programs for Nursing Facilities - Amends title XIX (Medicaid) of the Social Security Act to prohibit any State from establishing or operating any certificate of need program in connection with nursing facilities. Title IV: Tax-Free Conversion of Life Insurance Policies into Long-Term Care Insurance - Amends the Internal Revenue Code to exclude from the gross income of an individual otherwise taxable amounts derived from the whole or partial surrender, cancellation, or exchange of any life insurance policy if: (1) the individual is age 65 or older on the date of the transaction; and (2) the amounts in question are used to pay premiums for a long-term care insurance policy for the benefit of the individual or a spouse meeting the same 65-year age requirement. Title V: Reserves for Long-Term Care Insurance Treated in Same Manner as Reserves for Noncancellable Accident or Health Insurance - Amends the Internal Revenue Code to require that, for the purpose of determining the income tax liability of insurance companies, insurance contracts providing for qualified long-term health care be treated in the same way as noncancellable accident or health insurance contracts.

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1 official file

• Introduced in House

  summary · EN · 3 May 1988

  Open at official source

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