[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4498 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4498

To amend the Internal Revenue Code of 1986 to provide tax incentives to 
 enhance long-term care and to convene a National Summit on Long-Term 
                     Care, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2000

 Mrs. Biggert (for herself, Mr. Baker, Mr. Kuykendall, Mr. Porter, Mr. 
  Fletcher, and Mr. Shimkus) introduced the following bill; which was 
  referred to the Committee on Ways and Means, and in addition to the 
 Committees on Education and the Workforce, Commerce, and Banking and 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide tax incentives to 
 enhance long-term care and to convene a National Summit on Long-Term 
                     Care, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Live Long and Prosper Act of 2000''.

SEC. 2. FINDINGS.

    (a) Findings.--The Congress finds the following:
            (1) There are more than 34 million Americans aged 65 and 
        older living in the United States today. By 2030 that number is 
        expected to double to 70 million.
            (2) As the number of elderly Americans increases and as 
        medical advances extend the average human life span, the need 
        for some form of long-term home or institutional care will only 
        continue to grow.
            (3) The Nation is not presently ready--either through 
        private or public financing vehicles--to meet this growing 
        need. Nor are individuals and families financially ready to 
        meet their long-term care needs, which, in the case of nursing 
        home care, now cost more than $40,000 on average per year.
            (4) Most long-term care is currently financed either 
        through out-of-pocket expenditures or though the medicaid 
        program.
            (5) Many Americans are not aware that medicaid covers long-
        term care costs only after the person has divested their assets 
        and that medicare covers extremely few long-term care expenses.
            (6) While private long-term care insurance has the 
        potential to protect families from the catastrophic costs of 
        long-term care services, private insurance finances only an 
        estimated 7 percent of long-term care.
            (7) In order to meet the impending need, the Federal 
        Government has attempted to promote the purchase of private 
        long-term care insurance by establishing favorable Federal tax 
        rules for tax-qualified policies with the enactment of the 
        Health Insurance Portability and Accountability Act of 1996.
            (8) The Health Insurance Portability and Accountability Act 
        of 1996 has helped raise public awareness of the importance of 
        private long-term health care insurance coverage. However, the 
        Act has fallen short of expectations relating to the increased 
        purchase of long-term care insurance in the individual market. 
        What's more, the Act did little to encourage employers to 
        provide long-term care coverage as part of their employee 
        benefit plans.
            (9) It is in the fundamental interest of the United States 
        that Congress and the Administration take immediate steps to 
        educate the public on the need to prepare for long-term care 
        health care costs and to enact additional financial incentives 
        to protect them from the same.

SEC. 3. PURPOSES.

    It is the purpose of this Act--
            (1) to advance the public's knowledge and understanding of 
        long-term care, as well as long-term health care insurance and 
        its critical importance to the future well-being of American 
        workers and their families;
            (2) to financially encourage employers to offer private 
        long-term care insurance coverage to employees, but also to 
        encourage every generation to plan for and to obtain long-term 
        care insurance either through their employers or on their own;
            (3) to provide for a periodic, bipartisan long-term care 
        summit in conjunction with the White House to elevate the issue 
        of long-term care to national prominence; and
            (4) to initiate through the Departments of Health and Human 
        Services, Labor and other appropriate Executive Branch agencies 
        a timely, up-to-date, broad-based, public education campaign to 
        enhance the nation's commitment to meeting the growing crisis 
        in long-term care financing.

           TITLE I--TAX INCENTIVES TO ENHANCE LONG-TERM CARE

SEC. 101. DEDUCTION FOR HEALTH AND LONG-TERM CARE INSURANCE COSTS OF 
              INDIVIDUALS NOT PARTICIPATING IN EMPLOYER-SUBSIDIZED 
              HEALTH PLANS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 222 
as section 223 and by inserting after section 221 the following new 
section:

``SEC. 222. LONG-TERM CARE INSURANCE COSTS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the applicable percentage of 
the eligible long-term care premiums (as defined in section 213(d)(10)) 
paid during the taxable year for the taxpayer and the taxpayer's spouse 
and dependents.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage shall be determined in accordance with the 
following table:

``For taxable years beginning
                                                         The applicable
  in calendar year--
                                                        percentage is--
    2001...................................................      60  05
    2002...................................................      70  05
    2003...................................................      80  05
    2004...................................................      90  05
    2005 and thereafter....................................      100.  

    ``(c) Limitation Based on Other Coverage.--
            ``(1) Coverage under certain subsidized employer plans.--
                    ``(A) In general.--Subsection (a) shall not apply 
                to any taxpayer for any calendar month for which the 
                taxpayer participates in any long-term care plan 
                maintained by any employer of the taxpayer or of the 
                spouse of the taxpayer if 50 percent or more of the 
                cost of coverage under such plan (determined under 
                rules similar to the rules of section 4980B) is paid or 
                incurred by the employer.
                    ``(B) Employer contributions to cafeteria plans and 
                flexible spending arrangements.--Employer contributions 
                to a cafeteria plan, a flexible spending, or similar 
                arrangement which are excluded from gross income under 
                section 106 shall be treated for purposes of 
                subparagraph (A) as paid by the employer.
                    ``(C) Aggregation of plans of employer.--A health 
                plan which is not otherwise described in subparagraph 
                (A) shall be treated as described in such subparagraph 
                if such plan would be so described if all health plans 
                of persons treated as a single employer under 
                subsection (b), (c), (m), or (o) of section 414 were 
                treated as one health plan.
    ``(d) Special Rules.--
            ``(1) Coordination with deduction for health insurance 
        costs of self-employed individuals.--The amount taken into 
        account by the taxpayer in computing the deduction under 
        section 162(l) shall not be taken into account under this 
        section.
            ``(2) Coordination with medical expense deduction.--The 
        amount taken into account by the taxpayer in computing the 
        deduction under this section shall not be taken into account 
        under section 213.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out this section, including regulations 
requiring employers to report to their employees and the Secretary such 
information as the Secretary determines to be appropriate.''.
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (17) the following new item:
            ``(18) Long-term care insurance costs.--The deduction 
        allowed by section 222.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

                              ``Sec. 222. Long-term care insurance 
                                        costs.
                              ``Sec. 223. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 102. LONG-TERM CARE INSURANCE PERMITTED TO BE OFFERED UNDER 
              CAFETERIA PLANS AND FLEXIBLE SPENDING ARRANGEMENTS.

    (a) Cafeteria Plans.--Subsection (f) of section 125 of the Internal 
Revenue Code of 1986 (defining qualified benefits) is amended by 
inserting before the period at the end ``unless such product is a 
qualified long-term care insurance contract (as defined in section 
7702B).
    (b) Flexible Spending Arrangements.--Section 106 of such Code 
(relating to contributions by employer to accident and health plans) is 
amended by striking subsection (c).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 103. ADDITIONAL PERSONAL EXEMPTION FOR TAXPAYER CARING FOR ELDERLY 
              FAMILY MEMBER IN TAXPAYER'S HOME.

    (a) In General.--Section 151 of the Internal Revenue Code of 1986 
(relating to allowance of deductions for personal exemptions) is 
amended by redesignating subsection (e) as subsection (f) and by 
inserting after subsection (d) the following new subsection:
    ``(e) Additional Exemption for Certain Elderly Family Members 
Residing With Taxpayer.--
            ``(1) In general.--An exemption of the exemption amount for 
        each qualified family member of the taxpayer.
            ``(2) Qualified family member.--For purposes of this 
        subsection, the term `qualified family member' means, with 
        respect to any taxable year, any individual--
                    ``(A) who is an ancestor of the taxpayer or of the 
                taxpayer's spouse or who is the spouse of any such 
                ancestor,
                    ``(B) who is a member for the entire taxable year 
                of a household maintained by the taxpayer, and
                    ``(C) who has been certified, before the due date 
                for filing the return of tax for the taxable year 
                (without extensions), by a physician (as defined in 
                section 1861(r)(1) of the Social Security Act) as being 
                an individual with long-term care needs described in 
                paragraph (3) for a period--
                            ``(i) which is at least 180 consecutive 
                        days, and
                            ``(ii) a portion of which occurs within the 
                        taxable year.
        Such term shall not include any individual otherwise meeting 
        the requirements of the preceding sentence unless within the 
        39\1/2\-month period ending on such due date (or such other 
        period as the Secretary prescribes) a physician (as so defined) 
        has certified that such individual meets such requirements.
            ``(3) Individuals with long-term care needs.--An individual 
        is described in this paragraph if the individual--
                    ``(A) is unable to perform (without substantial 
                assistance from another individual) at least two 
                activities of daily living (as defined in section 
                7702B(c)(2)(B)) due to a loss of functional capacity, 
                or
                    ``(B) requires substantial supervision to protect 
                such individual from threats to health and safety due 
                to severe cognitive impairment and is unable to 
perform, without reminding or cuing assistance, at least one activity 
of daily living (as so defined) or to the extent provided in 
regulations prescribed by the Secretary (in consultation with the 
Secretary of Health and Human Services), is unable to engage in age 
appropriate activities.
            ``(4) Special rules.--Rules similar to the rules of 
        paragraphs (1), (2), (3), (4), and (5) of section 21(e) shall 
        apply for purposes of this subsection.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2000.

              TITLE II--NATIONAL SUMMIT ON LONG-TERM CARE

SEC. 201. NATIONAL SUMMIT ON LONG-TERM CARE.

    (a) In General.--Part 5 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 is amended by adding at the end 
the following new section:

           ``national summit on long-term care and financing

    ``Sec. 518. (a) Authority To Call Summit.--Not later than September 
1, 2002, the President shall convene a National Summit on Long-Term 
Care at the White House, to be hosted by the President with the 
bipartisan support of both Houses of the Congress. Such a National 
Summit shall be convened thereafter in 2004 and 2006 on or after August 
1 of each year involved. Such a National Summit shall--
            ``(1) advance the public's knowledge and understanding of 
        what constitutes long-term care, methods of financing long-term 
        care, and its importance to the future well-being of American 
        workers and their families;
            ``(2) facilitate the development of a broad-based, public 
        education program to encourage and enhance individual 
        commitment to financially prepare for some form of long-term or 
        institutional health care;
            ``(3) develop recommendations for additional research, 
        reforms in public policy, and actions in the field of long-term 
        care insurance; and
            ``(4) disseminate the report of, and information obtained 
        by, the National Summit and exhibit materials and works of the 
        National Summit.
    ``(b) Planning and Direction.--The National Summit shall be planned 
and conducted under the direction of the Secretary, in consultation 
with, and with the assistance of, the heads of such other Federal 
departments and agencies as the President may designate. Such 
assistance may include the assignment of personnel. The Secretary 
shall, in planning and conducting the National Summit, consult with the 
congressional leaders specified in subsection (e)(2). The Secretary 
shall also, in carrying out the Secretary's duties under this 
subsection, consult and coordinate with at least two organizations made 
up of private sector businesses and associations partnered with 
Government entities to promote financial security in retirement through 
long-term care insurance.
    ``(c) Purpose of National Summit.--The purpose of the National 
Summit shall be to--
            ``(1) increase the public awareness of the value of 
        preparing for long-term care and financing against long-term 
        care risks;
            ``(2) advance the public's knowledge and understanding of 
        long-term care financing and long-term care insurance, and its 
        critical importance to the future well-being of American 
        workers and their families;
            ``(3) advance the public's knowledge of the shortcomings of 
        long-term care services provided under the medicare and 
        medicaid programs and to discuss financial alternatives to such 
        programs;
            ``(4) facilitate the development of a broad-based, public 
        education program to encourage and enhance individual 
        commitment to financially preparing for long-term care 
        expenses;
            ``(5) identify the problems which hinder workers in 
        preparing for possible long-term care needs;
            ``(6) identify the barriers which impede employers, 
        especially small employers, from assisting workers in accessing 
        long-term care insurance;
            ``(7) examine the impact and effectiveness of individual 
        employers to promote long-term care insurance coverage and to 
        promote participation in employer sponsored health plans;
            ``(8) examine the impact and effectiveness of government 
        programs at the Federal, State, and local level to educate the 
        public about the need for, and to encourage the purchase of, 
        long-term care insurance;
            ``(9) develop such specific and comprehensive 
        recommendations for the legislative and executive branches of 
        the Government and for private sector action as may be 
        appropriate for promoting long-term care coverage, as well as 
        preparing American workers to financially meet long-term care 
        needs; and
            ``(10) develop recommendations for the coordination of 
        Federal, State, and local policies and needs with each other 
        and with the efforts of the private sector to meet the growing 
        need for long-term care services, and to identify the 
        appropriate authority and entities to implement such 
        recommendations.
    ``(d) National Summit Participants.--
            ``(1) In general.--To carry out the purposes of the 
        National Summit, the National Summit shall bring together--
                    ``(A) professionals and other individuals working 
                in the fields of employee benefits and retirement 
                savings;
                    ``(B) Members of Congress and officials in the 
                executive branch;
                    ``(C) representatives of State and local 
                governments;
                    ``(D) representatives of private sector 
                institutions, including individual employers, concerned 
                about promoting the issue of retirement savings and 
                facilitating savings among American workers; and
                    ``(E) representatives of the general public.
            ``(2) Statutorily required participation.--The participants 
        in the National Summit shall include the following individuals 
        or their designees:
                    ``(A) the Speaker and the Minority Leader of the 
                House of Representatives;
                    ``(B) the Majority Leader and the Minority Leader 
                of the Senate;
                    ``(C) the Chairman and ranking Member of the 
                Committee on Education and the Workforce of the House 
                of Representatives;
                    ``(D) the Chairman and ranking Member of the 
                Committee on Labor and Human Resources of the Senate; 
                and
                    ``(E) the Chairman and ranking Member of the 
                Special Committee on Aging of the Senate;
                    ``(F) the Chairman and ranking Member of the Ways 
                and Means Committee of the House of Representatives;
                    ``(G) the Chairman and ranking Member of the 
                Finance Committee of the Senate; and
                    ``(H) the parties referred to in subsection (b).
            ``(3) Additional participants.--Of the remaining 
        participants--
                    ``(A) one-fifth shall be appointed by the 
                President;
                    ``(B) one-fifth shall be appointed by the Speaker 
                of the House of Representatives;
                    ``(C) one-fifth shall be appointed by the Minority 
                Leader of the House of Representatives;
                    ``(D) one-fifth shall be appointed by the Majority 
                Leader of the Senate; and
                    ``(E) one-fifth shall be appointed by the Minority 
                Leader of the Senate.
        Such remaining participants shall be selected prior to May 1, 
        2001, without regard to political affiliation or past partisan 
        activity and shall be representative of the diversity of 
        thought in the fields of employee benefits and retirement 
        income savings.
            ``(4) Presiding officers.--The National Summit shall be 
        presided over equally by representatives of the executive and 
        legislative branches.
    ``(e) National Summit Administration.--
            ``(1) Administration.--In administering this section, the 
        Secretary shall--
                    ``(A) request the cooperation and assistance of 
                such other Federal departments and agencies and other 
                parties referred to in subsection (b) as may be 
                appropriate in the carrying out of this section;
                    ``(B) furnish all reasonable assistance, including 
                financial assistance, to State agencies, area agencies, 
                and other appropriate organizations to enable them to 
                organize and conduct conferences in conjunction with 
                the National Summit;
                    ``(C) make available for public comment a proposed 
                agenda for the National Summit that reflects to the 
                greatest extent possible the purposes for the National 
                Summit set out in this section;
                    ``(D) prepare and make available background 
                materials for the use of participants in the National 
                Summit that the Secretary considers necessary; and
                    ``(E) appoint and fix the pay of such additional 
                personnel as may be necessary to carry out the 
                provisions of this section without regard to provisions 
                of title 5, United States Code, governing appointments 
                in the competitive service, and without regard to 
                chapter 51 and subchapter III of chapter 53 of such 
                title relating to classification and General Schedule 
                pay rates.
            ``(2) Duties.--The Secretary shall, in carrying out the 
        responsibilities and functions of the Secretary under this 
        section, and as part of the National Summit, ensure that--
                    ``(A) the National Summit shall be conducted in a 
                manner that ensures broad participation of Federal, 
                State, and local agencies and private organizations, 
                professionals, and others involved in the area of long-
                term care and provides a strong basis for assistance to 
                be provided under paragraph (1)(B);
                    ``(B) the agenda prepared under paragraph (1)(C) 
                for the National Summit is published in the Federal 
                Register; and
                    ``(C) the personnel appointed under paragraph 
                (1)(E) shall be fairly balanced in terms of points of 
                views represented and shall be appointed without regard 
                to political affiliation or previous partisan 
                activities.
    ``(f) Report.--The Secretary shall prepare a report describing the 
activities of the National Summit and shall submit the report to the 
President, the Speaker and Minority Leader of the House of 
Representatives, the Majority and Minority Leaders of the Senate, and 
the chief executive officers of the States not later than 90 days after 
the date on which the National Summit is adjourned.
    ``(g) Definition.--For purposes of this section, the term `State' 
means a State, the District of Columbia, the Commonwealth of Puerto 
Rico, the Commonwealth of the Northern Mariana Islands, Guam, the 
Virgin Islands, American Samoa, and any other territory or possession 
of the United States.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        for fiscal years beginning on or after October 1, 2000, such 
        sums as are necessary to carry out this section.
            ``(2) Reliance on private contributions.--The Secretary may 
        accept private contributions, in the form of money, supplies, 
        or services, to defray the costs of the National Summit. The 
        Secretary shall ensure, to the extent practicable, that at 
        least one-half of the funds available to the Secretary for each 
        fiscal year to carry out the provisions of this section consist 
        of such private contributions.
    ``(i) Contracts.--The Secretary may enter into contracts to carry 
out the Secretary's responsibilities under this section, but only to 
the extent, or in such amounts, as are provided in advance in 
appropriations Acts.''.
    (b) Conforming Amendment.--The table of contents in section 1 of 
such Act (as amended by section 3 of this Act) is amended further by 
inserting after the item relating to section 516 the following new 
item:

``Sec. 518. National Summit on Long-Term Care and Financing.''.
    (c) Authorizations of Appropriations for Fiscal Year 2001.--
Notwithstanding subsection (i) of section 518 of the Employee 
Retirement Income Security Act of 1974 (added by this section), the 
amount authorized to be appropriated for fiscal year 2001 to carry out 
such section is an amount equal to $1,200,000.

     TITLE III--FEDERAL OUTREACH EFFORTS TO PROMOTE LONG-TERM CARE

SEC. 301. OUTREACH BY THE DEPARTMENT OF LABOR.

    (a) In General.--Part 5 of subtitle B of title I of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1131 et seq.) is 
amended by adding at the end the following new section:

  ``outreach to promote the financing and purchase of long-term care 
                               protection

    ``Sec. 519. (a) In General.--The Secretary shall maintain an 
ongoing program of outreach to the public designed to promote the 
financing and purchase of long-term health care insurance by the 
American workforce.
    ``(b) Methods.--The Secretary shall carry out the requirements of 
subsection (a) by means which shall ensure effective communication to 
the public, including publication of public service announcements, 
public meetings, creation of educational materials, and establishment 
of a site on the Internet.
    ``(c) Information To Be Available.--The information to be made 
available by the Secretary as part of the program of outreach required 
under subsection (a) shall include the following:
            ``(1) a description of the vehicles currently available to 
        individuals and employers for purchasing and maintaining long-
        term care coverage, specifically including information 
        explaining to employers, in simple terms, the characteristics 
        and operation of the different long-term care insurance 
        vehicles, including steps to establish each such vehicle, and
            ``(2) information regarding matters relevant to purchasing 
        long-term care insurance, such as--
                    ``(A) what constitutes long-term care,
                    ``(B) the forms of long-term care insurance,
                    ``(C) the shortcomings of long-term care provided 
                under the medicaid and medicare programs, particularly 
                `spend down' requirements and potential loss of 
                independence,
                    ``(D) the importance of preparing for long-term 
                care needs early in life, and
                    ``(E) the importance of the timing of purchasing 
                long-term care insurance.
    ``(d) Establishment of Site on the Internet.--The Secretary shall 
establish a permanent site on the Internet concerning long-term care. 
The site shall contain at least the following information:
            ``(1) a means for individuals to calculate their possible 
        long-term care needs, based on their retirement income goal as 
        a percentage of their preretirement income;
            ``(2) a description in simple terms of the common types of 
        long-term care, as well as long-term care insurance 
        arrangements available to both individuals and employers 
        (specifically including small employers);
            ``(3) materials explaining to employers in simple terms the 
        characteristics and operation of long-term care insurance 
        arrangements for their workers and what the basic legal 
        requirements are under this Act and the Internal Revenue Code 
        of 1986, and related provisions of law, including the steps to 
        establish each such arrangement;
            ``(4) copies of all educational materials developed by the 
        Department of Labor, and by other Federal agencies in 
        consultation with such Department, to promote long-term care 
        savings by workers and employers; and
            ``(5) links to other sites maintained on the Internet by 
        governmental agencies and nonprofit organizations that provide 
        additional detail on long-term care insurance plans and related 
        topics on savings or investing.
    ``(e) Coordination.--The Secretary shall coordinate the outreach 
program under this section with similar efforts undertaken by other 
public and private entities.''.
    (b) Conforming Amendment.--The table of contents in section 1 of 
such Act is amended by inserting after the item relating to section 518 
the following new item:

``Sec. 519. Outreach to promote the financing and purchase of long-term 
                            care protection.''.

SEC. 302. STUDY AND OUTREACH BY THE DEPARTMENT OF HEALTH AND HUMAN 
              SERVICES.

    (a) Study.--
            (1) In general.--The Secretary of Health and Human Services 
        shall provide, in accordance with this section, for a study in 
        order to determine--
                    (A) future demand for long-term health care 
                services (including institutional and home and 
                community-based services) in the United States in order 
                to meet the needs in the 21st century; and
                    (B) long-term options to finance the provision of 
                such services.
            (2) Details.--The study shall include the following:
                    (A) An identification of the relevant demographic 
                characteristics affecting demand for long-term health 
                care services, at least through the year 2050.
                    (B) The viability and capacity of community-based 
                and other long-term health care services under 
                different Federal programs, including through the 
                medicare and medicaid programs, grants to States, 
                housing services, and changes in tax policy.
                    (C) How to improve the quality of long-term health 
                care services.
                    (D) The integration of long-term health care 
                services for individuals between different classes of 
                health care providers (such as hospitals, nursing 
                facilities, and home care agencies) and different 
                Federal programs (such as the medicare and medicaid 
                programs).
                    (E) The possibility of expanding private sector 
                initiatives, including long-term care insurance, to 
                meet the need to finance such services.
                    (F) An examination of the effect of enactment of 
                the Health Insurance Portability and Accountability Act 
                of 1996 on the provision and financing of long-term 
                health care services, including on portability and 
                affordability of private long-term care insurance.
                    (G) The financial impact of the provision of long-
                term health care services on caregivers and other 
                family members.
                    (H) The impact of insurance options on low-income 
                older Americans, and the options for eligibility to 
                improve access to insurance, or other non-medicaid 
                coverage.
                    (I) The possible redesign of the medicaid program 
                to separate out the acute and long-term care 
                responsibilities of State and Federal government, 
                including options that allow a state to permit an 
                individual to contract with such state for access to 
                long-term care services in lieu of spending down 
                assets.
                    (J) The feasibility of developing a demonstration 
                program covering no more than 1 percent of the medicare 
                population that would allow an individual to supplement 
                medicare coverage by specific inclusion of long-term 
                care insurance to cover the gaps in medicare.
                    (K) The feasibility of the medicare program 
                supplementing the cost of long-term care insurance by 
                using the actuarial value of the skilled nursing and 
                home health benefits.
            (3) Report and recommendations.--
                    (A) In general.--Not later than 1 year after the 
                date of the enactment of this Act, the Secretary shall 
                provide for a report on the study under this 
                subsection.
                    (B) Recommendations.--The report shall include 
                recommendations regarding each of the following:
                            (i) The most effective and efficient manner 
                        that the Federal government may use its 
                        resources to educate the public on planning for 
                        needs for long-term health care services.
                            (ii) The public, private, and joint public-
                        private strategies for meeting identified needs 
                        for long-term health care services.
                            (iii) The role of states in the financing 
                        of long-term health care services.
                    (C) Inclusion of cost estimates.--The report shall 
                include cost estimates of the various options for which 
                recommendations are made.
            (4) Conduct of study.--
                    (A) Use of outside experts.--The Secretary of 
                Health and Human Services shall seek to enter into an 
                appropriate arrangement with any qualified non-
                governmental entity.
                    (B) Consultation.--The study should be conducted in 
                consultation with experts from a wide-range of groups 
                from the public and private sectors.
    (b) Additional Outreach to Seniors.--
            (1) State counseling programs.--There are authorized to be 
        appropriated $5,000,000 annually to supplement senior health 
        insurance counselling programs in states to provide information 
        on long term care issues related to medicare and medicaid, 
        insurance, and other related matters. Such funding shall be 
        distributed in the same manner as funds authorized and 
        appropriated pursuant to the Omnibus Budget and Reconciliation 
        Act of 1990.
            (2) Information outreach.--The Secretary of Health and 
        Human Services shall create within the Administration on Aging 
        and Health Care Financing Administration standing components 
        dedicated to information outreach on long-term care issues.
            (3) Establishment of site on the internet.--The Secretary 
        of Health and Human Services shall establish a permanent site 
        on the Internet concerning long-term care. The site shall 
        contain at least the following information:
            (1) a means for individuals to calculate their possible 
        long-term care needs and public and private coverage options;
            (2) a description in simple terms of the common types of 
        long-term care, as well as long-term care insurance 
        arrangements available, including a comparison database of all 
        insurance companies actively marketing products; and
            (3) access to educational materials developed by other 
        Federal agencies, including links to other sites maintained on 
        the Internet by governmental agencies and nonprofit 
        organizations that provide additional detail on long-term care, 
        caregiving, Federal programs, and insurance.

SEC. 303. STUDY BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

    (a) In General.--The Secretary of Housing and Urban Development 
shall, in consultation with the Secretary of Health and Human Services, 
conduct a study to identify and develop methods to better use the 
housing stock in the United States to more effectively address the 
housing component of the future long-term care needs of the people of 
the United States, by--
            (1) developing pilot programs to use home equity and 
        reverse mortgage options so that individual homeowners may 
        build, retain, and use equity in their homes--
                    (A) to pay for long-term care services so that 
                homeowners can age in place; and
                    (B) to enter into assisted living, continuing care 
                retirement communities, or other housing options for 
                seniors; and
            (2) in consultation with the homeowners' insurance industry 
        and other interested parties, determining the feasibility of 
        homeowner insurance options that assist homeowners in 
        retrofitting their homes to better accommodate aging and 
        disability needs.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary of Housing and Urban Development shall 
submit a report to the Congress on the results of the study under this 
section. The report shall include recommendations for improving the use 
of housing to address the long-term care needs of the people of the 
United States.

SEC. 304. OUTREACH BY THE SOCIAL SECURITY ADMINISTRATION.

    (a) Information Relating to Medicare, Medicaid, and Long-term Care 
To Be Included in Social Security Account Statements.--
            (1) In general.--Section 1143 of the Social Security Act 
        (42 U.S.C. 1320b-13) is amended by adding at the end the 
        following new subsection:

               ``Notices for Individuals Attaining Age 50

    ``(d)(1) Statements provided under this section to individuals in 
the year following the year in which they attain age 50 shall include, 
in addition to information otherwise required under this section--
            ``(A) a description of the benefits available under title 
        XVIII as hospital insurance benefits for the aged and disabled 
        and supplementary medical insurance benefits for the aged and 
        disabled,
            ``(B) a description of the benefits available under State 
        plans for medical assistance under title XIX, and
            ``(C) information regarding the necessity for, and 
        assistance with respect to, planning and preparation prior to 
        retirement for long-term care after retirement.
    ``(2) Information included in statements pursuant to paragraph (1) 
shall be prepared in consultation with the Secretary of Health and 
Human Services.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply with respect to statements issued after December 
        31, 2001. All statements provided under section 1143 of the 
        Social Security Act in 2002 to individuals who attained age 50 
        prior to 2001 shall include the information described in 
        section 1143(d)(1) of such Act.
    (b) Study Regarding Long-Term Care.--
            (1) Study.--As soon as practicable after the date of the 
        enactment of this Act, the Commissioner of Social Security 
        shall, in consultation with the Secretary of Health and Human 
        Services, conduct a study regarding--
                    (A) the most feasible means by which a small 
                portion of the wages paid to, and self-employment 
                income derived by, individuals during their working 
                life could be directed toward the purchase of long-term 
                care insurance as a means of necessary asset protection 
                for purposes of retirement,
                    (B) the savings obtainable in providing for the 
                financing of long-term care in the form of regular 
                payments made over the term of a full work life, and
                    (C) the feasibility of providing for 
                supplementation by long-term care insurance of benefits 
                received as social security disability insurance 
                benefits prior to attaining retirement age.
    (2) Report.--Not later than one year after the date of the 
enactment of this Act, the Commissioner shall submit to the President 
and to each House of the Congress a report, together with any 
recommendations, regarding the results of the study under paragraph 
(1).
                                 <all>