Private Long-Term Care Insurance Act of 1991

Summary

Private Long-Term Care Insurance Act of 1991 - Title I: Tax Treatment of Long-Term Care - Subtitle A: General Provisions - Amends the Internal Revenue Code to allow an individual itemized deduction for qualified long-term care services. Defines such services as necessary diagnostic, preventive, therapeutic, and rehabilitative services, and maintenance and personal care services which: (1) are required by a chronically ill individual; (2) have as their primary purpose the provision of needed assistance with daily living activities which the individual is certified as being unable to perform; and (3) are provided pursuant to a continuing plan of care prescribed by a licensed health practitioner. Provides for: (1) long-term care insurance contracts to be treated as accident or health insurance contracts; (2) amounts received under such contracts with respect to qualified long-term care services to be treated as amounts received for personal injuries or sickness; (3) employer plans providing such services to be treated as an accident or health plan; and (4) per diem and other periodic payments to be treated as payments made with respect to qualified long-term care services, with specified limitations. Declares that a qualified long-term care insurance contract is one in which the only insurance protection provided is coverage of qualified long-term care services. Prohibits borrowing under such contract and its assignment or pledging as collateral for a loan. Prohibits such contract from covering expenses to the extent that such expenses are reimbursable under title XVIII (Medicare) of the Social Security Act. Provides for the tax treatment of policyholders based on dollar limitations on per diem and other periodic payments. Makes the continuation coverage excise tax inapplicable to qualified long-term care insurance contracts or plans of employers that provide such coverage. Subtitle B: Consumer Protection Provisions - Sets forth specified consumer protection provisions to be satisifed by qualified long-term Association of Insurance Commissioners (NAIC). Imposes an excise tax of $5,000 on any person who fails to meet specified requirements for such contracts with respect to: (1) regulation of sales practices; (2) model Act provisions; and (3) disclosure. Requires NAIC to promulgate standards for the use of uniform language and definitions in long-term care insurance policies by January 1, 1993. Title II: Treatment of Accelerated Death Benefits - Provides for the treatment of amounts paid to a terminally ill individual as death benefits. Allows insurance companies to issue such accelerated death benefit riders on life insurance contracts. Requires spousal consent for such treatment and riders. Amends title XI of the Social Security Act to prohibit applicants or recipients under public assistance programs from being required to make an election respecting accelerated death benefits under life insurance policies.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 2 August 1991

   Introduced

   Introduced in Senate

   Source: IntroReferral

2. 2 August 1991

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

3. 23 June 1992

   Committee

   Subcommittee on Medicare and Long-Term Care. Hearings held. Hearings printed: S.Hrg. 102-1040.

   Source: Committee

Votes

No vote records are attached yet.

Versions

• Introduced in Senate · undated · Official file

Documents

2 official files

• Introduced in Senate (text)

  Introduced in Senate · EN

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 2 August 1991

  Open at official source

Sponsors

• Sen. Bentsen, Lloyd M. [D-TX] · D · Sponsor
• Sen. Packwood, Bob [R-OR] · R · Sponsor
• Sen. Dole, Robert J. [R-KS] · R · Sponsor
• Sen. Pryor, David H. [D-AR] · D · Sponsor
• Sen. Chafee, John H. [R-RI] · R · Sponsor
• · ssfi00 · Standing

Related records

No cross-record relationships stored yet.