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Payment of Long-Term Care Insurance Premiums - Amends the Internal Revenue Code to exclude from gross income amounts withdrawn from individual retirement accounts (IRAs) if: (1) the payee or distributee is age 59 1/2; and (2) the distribution is used to pay premiums for a qualified long-term care insurance policy for the benefit of the payee or distributee or the spouse, if the spouse is age 59 1/2. Defines a qualified long-term care insurance policy as a certified insurance policy or rider to provide coverage: (1) for not less than 12 consecutive months; (2) on an expense incurred, indemnity, or prepaid basis; (3) for one or more medically necessary, diagnostic services, preventive services, therapeutic services, rehabilitation services, maintenance services, personal care services, or continuing care services; and (4) provided in a setting other than an acute care unit of a hospital. Excludes policies or riders that primarily provide combinations of certain other kinds of coverage. Title II: Employers Encouraged to Offer Higher Deductibles on Employer-Provided Group Health Insurance - Allows trustees of eligible IRAs to extend credit, with such accounts as security for the credit, to employees who accept the high deductible option under employer group health insurance plans in return for the employer contributing the premium savings amount to employee IRAs. Limits the amount of credit for which an account may be used as security. Allows penalty-free distributions from IRAs to repay credit extended for medical expenses. Title III: Elimination of Certificate of Need Programs for Nursing Facilities - Amends title XIX (Medicaid) of the Social Security Act to eliminate the certificate of need program for nursing facilities. Title IV: Tax-Free Conversion of Life Insurance Policies Into Long-Term Care Insurance - Excludes from gross income amounts otherwise includible on the surrender, cancellation, or exchange of any life insurance contract, if: (1) the individual is age 65; and (2) the amount otherwise includible in gross income is used to pay long-term care insurance premiums. Title V: Exclusion of Gain on Sale of Principal Residence by Individuals Who Have Attained Age 55 Increased for Amounts Set Aside for Long-Term Care - Increases the excludible amount on the gain on the sale of a principal residence by individuals who have attained age 55 by the amount set aside by the taxpayer to pay the expenses of the taxpayer or his spouse for long-term care. Title VI: Reserves for Long-Term Care Insurance Treated in Same Manner as Reserves for Noncancellable Accident or Health Insurance - Provides for the treatment of qualified long-term care insurance in the same manner as noncancellable accident or health insurance.

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Documents

2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 29 April 1992

  Open at official source

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