[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 36 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 36

To amend title 5, United States Code, to provide for the establishment 
 of a program under which long-term care insurance may be obtained by 
                   Federal employees and annuitants.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 19, 1999

  Mr. Grassley (for himself and Mr. Graham) introduced the following 
      bill; which was read twice and referred to the Committee on 
                          Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To amend title 5, United States Code, to provide for the establishment 
 of a program under which long-term care insurance may be obtained by 
                   Federal employees and annuitants.

    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 ``The American Worker Long-Term Care 
Affordability Act of 1999''.

SEC. 2. LONG-TERM CARE INSURANCE.

    (a) In General.--Subpart G of part III of title 5, United States 
Code, is amended by adding at the end the following:

                 ``CHAPTER 90--LONG-TERM CARE INSURANCE

``Sec.
``9001. Definitions.
``9002. Availability of insurance.
``9003. Participating carriers.
``9004. Administrative functions.
``9005. Coordination with State laws.
``9006. Commercial items.
``Sec. 9001. Definitions
    ``In this chapter:
            ``(1) The term `employee' has the meaning given such term 
        by section 8901, but does not include an individual employed by 
        the government of the District of Columbia.
            ``(2) The term `annuitant'--
                    ``(A) means--
                            ``(i) a former employee who, based on the 
                        service of that individual, receives an annuity 
                        under subchapter III of chapter 83, chapter 84, 
                        or another retirement system for employees of 
                        the Government (disregarding title XVIII of the 
                        Social Security Act (42 U.S.C. 1395 et seq.) 
                        and any retirement system established for 
                        employees described in section 2105(c)); and
                            ``(ii) any individual who receives an 
                        annuity under any retirement system referred to 
                        in clause (i) (disregarding those described 
                        parenthetically) as the surviving spouse of an 
                        employee (including an amount under section 
                        8442(b)(1)(A), whether or not an annuity under 
                        section 8442(b)(1)(B) is also payable) or of a 
                        former employee under clause (i); and
                    ``(B) does not include a former employee of a 
                Government corporation excluded by regulation of the 
                Office of Personnel Management or the spouse of such a 
                former employee.
            ``(3) The term `eligible relative', as used with respect to 
        an employee or annuitant, means each of the following:
                    ``(A) The spouse of the employee or annuitant.
                    ``(B) The father or mother of the employee or 
                annuitant, or an ancestor of either.
                    ``(C) A stepfather or stepmother of the employee or 
                annuitant.
                    ``(D) The father-in-law or mother-in-law of the 
                employee or annuitant.
                    ``(E) A son or daughter of the employee or 
                annuitant who is at least 18 years of age.
                    ``(F) A stepson or stepdaughter of the employee or 
                annuitant who is at least 18 years of age.
            ``(4) The term `Government' means the Government of the 
        United States, including an agency or instrumentality thereof.
            ``(5) The term `group long-term care insurance' means group 
        long-term care insurance purchased by the Office of Personnel 
        Management under this chapter.
            ``(6) The term `individual long-term care insurance' means 
        any long-term care insurance offered under this chapter which 
        is not group long-term care insurance.
            ``(7) A carrier shall be considered to be a `qualified 
        carrier', with respect to a State, if it is licensed to issue 
        group or individual long-term care insurance (as the case may 
        be) under the laws of such State.
            ``(8) The term `qualified long-term care insurance 
        contract' has the meaning given such term by section 7702B of 
        the Internal Revenue Code of 1986.
            ``(9) The term `State' means a State, the District of 
        Columbia, the Commonwealth of Puerto Rico, the Commonwealth of 
        the Northern Mariana Islands, the Trust Territory of the 
        Pacific Islands, the Virgin Islands, Guam, American Samoa, and 
        any other territory or possession of the United States.
``Sec. 9002. Availability of insurance
    ``(a) The Office of Personnel Management shall establish and 
administer a program through which employees and annuitants may obtain 
group or individual long-term care insurance for themselves, a spouse, 
or, to the extent permitted under the terms of the contract of 
insurance involved, any other eligible relative.
    ``(b) Long-term care insurance may not be offered under this 
chapter unless--
            ``(1) the only insurance protection provided is coverage 
        under qualified long-term care insurance contracts; and
            ``(2) the insurance contract under which such coverage is 
        provided is issued by a qualified carrier.
    ``(c) In addition to the requirements otherwise applicable under 
section 9001(8), in order to be considered a qualified long-term care 
insurance contract for purposes of this chapter, a contract shall be 
fully insured, whether through reinsurance with other companies or 
otherwise.
    ``(d) Nothing in this chapter shall be considered to require that 
long-term care insurance coverage be made available in the case of any 
individual who would be immediately benefit eligible.
``Sec. 9003. Participating carriers
    ``(a) Before the beginning of each year, the Office of Personnel 
Management shall--
            ``(1) identify each carrier through whom any long-term care 
        insurance may be obtained under this chapter during such year; 
        and
            ``(2) prepare a list of the carriers identified under 
        paragraph (1), and a summary description of the insurance 
        obtainable under this chapter from each.
    ``(b) In order to carry out its responsibilities under subsection 
(a), the Office shall annually specify the timetable (including any 
application deadlines) and other procedures that shall be followed by 
carriers seeking to be allowed to offer long-term care insurance under 
this chapter during the following year.
    ``(c) Before the beginning of each year, the Office shall in a 
timely manner--
            ``(1) publish in the Federal Register the list (and summary 
        description) prepared under subsection (a) for such year; and
            ``(2) make available to each individual eligible to obtain 
        long-term care insurance under this chapter such information, 
        in a form acceptable to the Office after consultation with the 
        carrier, as may be necessary to enable the individual to 
        exercise an informed choice among the various options available 
        under this chapter.
    ``(d)(1) The Office shall arrange to have the appropriate 
individual or individuals receive--
            ``(A) a copy of any policy of insurance obtained under this 
        chapter; or
            ``(B) in the case of group long-term care insurance, a 
        certificate setting forth the benefits to which an individual 
        is entitled, to whom the benefits are payable, and the 
        procedures for obtaining benefits, and summarizing the 
        provisions of the policy principally affecting the individual 
        or individuals involved.
    ``(2) Any certificate issued under paragraph (1)(B) shall be issued 
instead of the certificate which the insurance company would otherwise 
be required to issue.
``Sec. 9004. Administrative functions
    ``(a) Except as provided in section 9003, the sole functions of the 
Office of Personnel Management under this chapter shall be as follows:
            ``(1) To provide reasonable opportunity (consisting of not 
        less than one continuous 30-day period each year) for eligible 
        employees and annuitants to obtain long-term care insurance 
        coverage under this chapter.
            ``(2) To provide for a means by which the cost of any long-
        term care insurance coverage obtained under this chapter may be 
        paid for through withholdings from the pay or annuity of the 
        employee or annuitant involved.
            ``(3) To contract for a qualified long-term care insurance 
        contract (in the case of group long-term care insurance) with 
        each qualified carrier that offers such insurance, if such 
        carrier submits a timely application under section 9003(b) and 
        complies with such other procedural rules as the Office may 
        prescribe.
    ``(b) Nothing in this chapter shall be considered to permit or 
require the Office to--
            ``(1) prevent from being offered under this chapter any 
        individual long-term care insurance under a qualified contract; 
        or
            ``(2) prescribe or negotiate over the benefits to be 
        offered, or any of the terms or conditions under which any such 
        benefits shall be offered, under this chapter.
``Sec. 9005. Coordination with State laws
    ``(a) The provisions of any contract under this chapter for group 
long-term care insurance may include provisions to supersede and 
preempt any provisions of State or local law described in subsection 
(b), or any regulation issued thereunder.
    ``(b) This subsection applies to any provision of law which in 
effect carries out the same policy as section 5 of the long-term care 
insurance model Act, promulgated by the National Association of 
Insurance Commissioners (as adopted as of September 1997).
``Sec. 9006. Commercial items
    ``For purposes of the Office of Federal Procurement Policy Act (41 
U.S.C. 403 et seq.), a long-term care insurance contract under this 
chapter shall be considered a commercial item, as defined in section 
4(12) of such Act.''.
    (b) Conforming Amendment.--The table of chapters for part III of 
title 5, United States Code, is amended by adding at the end of subpart 
G the following:

``90. Long-Term Care Insurance.............................     9001''.

SEC. 3. EFFECTIVE DATE.

    The Office of Personnel Management shall take all necessary actions 
to ensure that long-term care insurance coverage under chapter 90 of 
title 5, United States Code, (as added by this Act) may be obtained in 
time to take effect beginning on the first day of the first applicable 
pay period beginning on or after January 1, 2000.
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