I 111th CONGRESS 1st Session H. R. 4078 IN THE HOUSE OF REPRESENTATIVES November 16, 2009 Mr. Perriello introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To require the Secretary of Health and Human Services to develop a national model disclosure form to assist consumers in purchasing long-term care insurance.

1.

Short title

This Act may be cited as the Long-Term Care Insurance Disclosure Act of 2009.

2.

Development of model disclosure form for long-term care insurance

(a)

In general

The Secretary of Health and Human Services shall, in consultation with the National Association of Insurance Commissioners and not later than 180 days after the date of the enactment of this Act, develop a national model disclosure form for marketing long-term care insurance policies. (b)

Requirements

In developing the model disclosure form under subsection (a), the Secretary of Health and Human Services shall ensure that at least each of the following requirements are met: (1)The model disclosure form shall be not more than one single-sided page in length. (2)The model disclosure form shall use standard, plain language for purposes of explaining the services and benefits covered under the long-term care insurance policy involved and restrictions on the services and benefits. (3)The model disclosure form shall use standard, consistent definitions for coverage of the various types of services and benefits provided under long-term care insurance policies in such a manner as to ensure that issuers do not use different terms to describe the same services or benefit. (4)The model disclosure form shall have a standard, consistent format with respect to font, color, and type size to enable consumers to more easily compare policies. (5)The model disclosure form shall provide for a standard, consistent disclosure of key provisions, such as monthly premiums, the maximum daily or monthly benefit, and the extent to which benefit amounts will be adjusted for inflation in the future. (6)The model disclosure form shall provide for such other minimum standards as the Secretary determines appropriate.

3.

Required use of model disclosure form in marketing long-term care insurance policies

(a)

Application to Tax-Qualified and Medicaid Partnership Policies

Not later than 1 year after the date on which the Secretary of Health and Human Services issues the proposed model disclosure form under section 2— (1)the Secretary of the Treasury shall promulgate a regulation requiring, not later than 1 year after the date on which the regulation is final, any issuer of a qualified long-term care insurance contract (as defined in section 7702B(b) of the Internal Revenue Code of 1986) to use the proposed model disclosure form for marketing such contracts; and (2)the Secretary of Health and Human Services shall promulgate a regulation requiring, not later than 1 year after the date on which the regulation is final, any issuer of a qualified long-term care insurance contract that covers an insured who is a resident of a State with a qualified State long-term care insurance partnership under clause (iii) of section 1917(b)(1)(C) of the Social Security Act (42 U.S.C. 1396p(b)(1)(C)) or a long-term care insurance policy offered in connection with a State plan amendment described in clause (iv) of such section to use the proposed model disclosure form for marketing such contracts.

4.

Definitions

For purposes of this Act: (1)

Long-term care insurance policy

The term long-term care insurance policy means— (A)a qualified long-term care insurance contract (as defined in section 7702B(b) of the Internal Revenue Code of 1986); and (B)a qualified long-term care insurance contract that covers an insured who is a resident of a State with a qualified State long-term care insurance partnership under clause (iii) of section 1917(b)(1)(C) of the Social Security Act (42 U.S.C. 1396p(b)(1)(C)) or a long-term care insurance policy offered in connection with a State plan amendment described in clause (iv) of such section. (2)

State

The term State means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Commonwealth of the Northern Mariana Islands, and American Samoa.