[Congressional Record Volume 144, Number 125 (Friday, September 18, 1998)]
[Senate]
[Page S10616]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    S. 2492--THE LONG-TERM CARE AND RETIREMENT SECURITY ACT OF 1998

  S. 2492, introduced by Mr. Grassley on September 17, is as follows:

                                S. 2492

       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 ``Long-Term Care and 
     Retirement Security Act of 1998''.

     SEC. 2. DEDUCTION FOR LONG-TERM CARE HEALTH INSURANCE COSTS 
                   FOR INDIVIDUALS NOT ELIGIBLE TO PARTICIPATE IN 
                   EMPLOYER-SUBSIDIZED LONG-TERM CARE HEALTH 
                   PLANS.

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

     ``SEC. 222. QUALIFIED 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 amount 
     of the eligible long-term care premiums (as defined in 
     section 213(d)(10)) paid during the taxable year for coverage 
     of the taxpayer and the spouse and dependents of the 
     taxpayer.
       ``(b) Limitation Based on Other Coverage.--Subsection (a) 
     shall not apply to any taxpayer for any calendar month for 
     which the taxpayer is eligible to participate in any 
     subsidized long-term care plan maintained by any employer of 
     the taxpayer or of the spouse of the taxpayer. For purposes 
     of the preceding sentence, the term `subsidized long-term 
     care plan' means a subsidized health plan which includes 
     primarily coverage for qualified long-term care services (as 
     defined in section 7702B(c)) or is a qualified long-term care 
     insurance contract (as defined in section 7702B(b)).
       ``(c) Special Rules.--
       ``(1) Coordination with medical deduction.--Any amount paid 
     by a taxpayer for insurance to which subsection (a) applies 
     shall not be taken into account in computing the amount 
     allowable to the taxpayer as a deduction under section 
     213(a).
       ``(2) Deduction not allowed for self-employment tax 
     purposes.--The deduction allowable by reason of this section 
     shall not be taken into account in determining an 
     individual's net earnings from self-employment (within the 
     meaning of section 1402(a)) for purposes of chapter 2.''
       (b) Conforming Amendments.--
       (1) Subparagraph (C) of section 162(l)(2) of such Code is 
     amended to read as follows:
       ``(C) Long-term care premiums.--No deduction shall be 
     allowed under this subsection for premiums on any qualified 
     long-term care insurance contract (as defined in section 
     7702B(b)).''
       (2) Subsection (a) of section 62 of such Code is amended by 
     inserting after paragraph (17) the following new paragraph:
       ``(18) Long-term care insurance costs of certain 
     individuals.--The deduction allowed by section 222.''
       (3) 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. Qualified long-term care insurance costs.
``Sec. 223. Cross reference.''
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1997.

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