II 109th CONGRESS 1st Session S. 1569 IN THE SENATE OF THE UNITED STATES July 29, 2005 Mr. Craig (for himself and Mr. Bayh) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XIX of the Social Security Act to facilitate the establishment of additional long-term care insurance partnerships between States and insurers in order to promote the use of long-term care insurance.

1.

Short title

This Act may be cited as the State Long-Term Care Partnership Act of 2005.

2.

Allowance of additional State long-term care partnerships

(a)

In general

Section 1917(b) of the Social Security Act (42 U.S.C. 1396(b)) is amended— (1)in paragraph (1)(C)(i), by striking shall seek adjustment and inserting may seek adjustment; (2)in paragraph (1)(C)(ii), by inserting Qualified State Long-Term Care Insurance Partnership or under a after Clause (i) shall not apply in the case of an individual who received medical assistance under a; and (3)in paragraph (4)(B), by striking (and shall include, in the case of an individual to whom paragraph (1)(C)(i) applies). (b)

Definition of a Qualified State Long-Term Care Insurance Partnership

Section 1917(e) of the Social Security Act (42 U.S.C. 1396p(e)) is amended by inserting at the end the following: (6)The term Qualified State Long-Term Care Insurance Partnership means a State plan amendment that provides for the disregard of any assets or resources in an amount equal to the insurance benefits payments that are made under a long-term care insurance policy (including a certificate issued under a group insurance contract), but only if— (A)the policy covers an insured who, at the time coverage under the policy first becomes effective, is a resident of such State or of a State that maintains a Qualified Long-Term Care Insurance Partnership; (B)the policy is a qualified long-term care insurance contract within the meaning of section 7702B(b) of the Internal Revenue Code of 1986; (C)the policy provides some level of inflation protection; (D)the policy satisfies any requirements of State or other applicable law that apply to a long-term care insurance policy; and (E)the issuer of the policy reports— (i)to the Secretary, such information or data as the Secretary may require; and (ii)to the State, the information or data reported to the Secretary (if any), the information or data required under the minimum reporting requirements developed under section 2(c)(1) of the State Long-Term Care Partnership Act of 2005, and such additional information or data as the State may require. For purposes of applying this paragraph, if a long-term care insurance policy is exchanged for another such policy, the date coverage became effective under the first policy shall determine when coverage first becomes effective.. (c)

Regulatory authority

Not later than 6 months after the date of enactment of this Act, the Secretary of Health and Human Services (in this subsection and subsection (d) referred to as the Secretary), in consultation with the National Association of Insurance Commissioners, issuers of long-term care insurance policies, States with experience with long-term care insurance partnership plans, and other States, shall develop the following requirements and standards: (1)

Minimum, consistent reporting requirements

(A)

In general

Minimum reporting requirements for issuers of long-term care insurance policies under Qualified State Long-Term Care Insurance Partnerships that shall specify the data and information that each such issuer shall report to the State with which it has such a partnership. The requirements developed in accordance with this paragraph shall specify the type and format of the data and information to be reported and the frequency with which such reports are to be made. (B)

State required data

Nothing in subparagraph (A) shall be construed as prohibiting a State from requiring an issuer of a long-term care insurance policy sold in the State (regardless of whether the policy is issued under a Qualified State Long-Term Care Insurance Partnership) to require the issuer to report State information or data to the State that is in addition to the information or data required under the minimum reporting requirements developed under that subparagraph. (2)

Reciprocity standards

Standards for ensuring that long-term care insurance policies issued under a Qualified State Long-Term Care Insurance Partnership are portable to other States with such a partnership. (d)

Consumer education

The Secretary shall establish procedures for educating consumers regarding Qualified State Long-Term Care Insurance Partnerships and long-term care insurance policies issued in connection with such partnerships. (e)

Annual reports to congress

The Secretary shall annually report to Congress on the Qualified State Long-Term Care Insurance Partnerships established in accordance with subsections (b)(1)(C)(ii) and (e)(6) of section 1917 of the Social Security Act (42 U.S.C. 1396p). (f)

Effective date

The amendments made by subsections (a) and (b) take effect on October 1, 2005.