[Congressional Record (Bound Edition), Volume 147 (2001), Part 15]
[House]
[Pages 20984-20985]
[From the U.S. Government Publishing Office, www.gpo.gov]



            FEDERAL LONG-TERM CARE INSURANCE AMENDMENTS ACT

  Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I move to suspend the 
rules and pass the bill (H.R. 2559) to amend chapter 90 of title 5, 
United States Code, relating to Federal long-term care insurance.
  The Clerk read as follows:

                               H.R. 2559

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

     SECTION 1. DEFINITION OF AN ANNUITANT.

       Paragraph (2) of section 9001 of title 5, United States 
     Code, is amended to read as follows:
       ``(2) Annuitant.--The term `annuitant' means--
       ``(A) any individual who would satisfy the requirements of 
     paragraph (3) of section 8901 if, for purposes of such 
     paragraph, the term `employee' were considered to have the 
     meaning given to it under paragraph (1) of this subsection; 
     and
       ``(B) any individual who--
       ``(i) satisfies all requirements for title to an annuity 
     under subchapter III of chapter 83, chapter 84, or any other 
     retirement system for employees of the Government (whether 
     based on the service of such individual or otherwise), and 
     files application therefor;
       ``(ii) is at least 18 years of age; and
       ``(iii) would not (but for this subparagraph) otherwise 
     satisfy the requirements of this paragraph.''.

     SEC. 2. PREEMPTION.

       Section 9005 of title 5, United States Code, is amended--
       (1) by inserting ``(a) Contractual Provisions.--'' before 
     ``The''; and
       (2) by adding at the end the following:
       ``(b) Premiums.--
       ``(1) In general.--No tax, fee, or other monetary payment 
     may be imposed or collected, directly or indirectly, by any 
     State, the District of Columbia, or the Commonwealth of 
     Puerto Rico, or by any political subdivision or other 
     governmental authority thereof, on, or with respect to, any 
     premium paid for an insurance policy under this chapter.
       ``(2) Rule of construction.--Paragraph (1) shall not be 
     construed to exempt any company or other entity issuing a 
     policy of insurance under this chapter from the imposition, 
     payment, or collection of a tax, fee, or other monetary 
     payment on the net income or profit accruing to or realized 
     by such entity from business conducted under this chapter, if 
     that tax, fee, or payment is applicable to a broad range of 
     business activity.''.

     SEC. 3. EFFECTIVE DATE.

       The amendments made by this Act shall take effect as if 
     included in the enactment of section 1002 of the Long-Term 
     Care Security Act (Public Law 106-265; 114 Stat. 762).

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
Virginia (Mrs. Jo Ann Davis) and the gentleman from Illinois (Mr. 
Davis) each will control 20 minutes.
  The Chair recognizes the gentlewoman from Virginia (Mrs. Jo Ann 
Davis).


                             General Leave

  Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I ask unanimous consent 
that all Members may have 5 legislative days in which to revise and 
extend their remarks on the bill, H.R. 2559.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Virginia?
  There was no objection.
  Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I yield myself such time 
as I may consume.
  Mr. Speaker, I rise in strong support of H.R. 2559. Last year, 
Congress enacted the Long-Term Care Security Act. That bill established 
a program to permit the Federal Government to offer private long-term 
care insurance at a group discount as an employment benefit. Beginning 
in October of 2002, Federal employees, civilian retirees and active and 
retired members of the military will be eligible to purchase long-term 
care insurance through this new program.

                              {time}  1445

  H.R. 2559 will improve that program. This bill expands the population 
served by the Federal Government's long-term care program.
  Mr. Speaker, many individuals leave Federal employment before they 
are entitled to an immediate annuity, even though they worked long 
enough to earn retirement at a later date. Currently they are not 
eligible to participate in the long-term care insurance program. H.R. 
2559 will rectify this situation. Such individuals will be eligible to 
buy long-term care insurance through the program when they file for 
their deferred annuity.
  In order to hold down premium costs, the bill also exempts policies 
issued under the program from premium taxes imposed by States, local 
governments, and the Commonwealth of Puerto Rico. Similar exemptions 
already exist for premiums paid under the Federal Employees Health 
Benefits Program and Federal Employees Group Life Insurance Program.
  Exempting premiums from these taxes will reduce premiums in two ways. 
First, of course, the cost of long-term care insurance will be lower 
simply because the premiums will not have to build in the amount of the 
taxes. Second, the carriers will not have to incur the cost of 
complying with the wide array of premium tax laws that differ from 
jurisdiction to jurisdiction.
  Lower costs mean lower premiums. The Office of Personnel Management 
estimates that the exemption will shave long-term care premiums by 2.5 
percent. This is important because potential consumers of long-term 
care insurance are very sensitive to price.
  I would also note, Mr. Speaker, that the Long-Term Care Security Act 
intends that the Office of Personnel Management will perform many of 
the consumer protection functions traditionally conducted by State 
insurance commissioners. These changes will be effective as if enacted 
in the Long-Term Care Security Act and will substantially improve the 
Federal Government's long-term care insurance program.
  I encourage all Members to support H.R. 2559.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.

[[Page 20985]]

  Mr. Speaker, I am pleased to be an original cosponsor of H.R. 2559. 
It will improve the Federal long-term care insurance program, which was 
created last year by the Long-Term Care Security Act.
  Last session, the gentleman from Florida (Mr. Scarborough), the 
gentleman from Maryland (Mr. Cummings), the gentlewoman from the 
District of Columbia (Ms. Norton), the gentlewoman from Maryland (Mrs. 
Morella), the gentleman from Florida (Mr. Mica), and the gentleman from 
Maine (Mr. Allen) worked in a bipartisan way to bring a long-term care 
insurance program to Federal employees.
  The Long-Term Care Security Act authorizes the Office of Personnel 
Management to purchase group long-term insurance policies from 
qualified private sector contractors, thereby making long-term care 
insurance available to Federal employees, Federal retirees, and their 
family members. The corrections to the Long-Term Care Security Act 
proposed in H.R. 2559 will continue to ensure that the best possible 
program is being designed for Federal employees.
  Under the Long-Term Care Corrections Act, all Federal employees 
entitled to an annuity under the Federal Retirement System will be 
eligible to participate in the long-term care program, as was intended 
when the Long-Term Care Security Act was enacted.
  Additionally, as in the case with the health and life insurance 
policies issued through the Federal Employees Health Benefits Program 
and the Federal Employees Group Life Insurance Program, long-term care 
insurance policies issued through the Federal long-term care program 
would be exempt from premium taxes imposed by States and local 
governments, making premiums competitive for Federal employees. 
Obviously, this program improves substantially the health benefits 
program for Federal employees.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Virginia (Mr. Moran).
  Mr. MORAN of Virginia. Mr. Speaker, I thank the distinguished 
gentleman from Illinois for yielding me time.
  Mr. Speaker, I just want to rise to reflect the broad-based support 
that this provision has within the Congress. This is not going to cost 
the American taxpayer any money, but it will provide some personal 
security for the great many Federal employees who need long-term care 
insurance.
  This was a good idea. There were any number of Members, particularly 
from the Washington metropolitan area, who pushed it. It is an 
important benefit, and it is one that all of the Federal workers 
throughout the country are going to appreciate. And particularly at 
this time when they are working under such fear and anxiety, it is the 
appropriate thing to do. I know it will be much appreciated.
  So I strongly support this measure. I thank the gentlewoman from 
Virginia and the gentleman from Illinois for bringing it to the floor 
today.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I simply reiterate my strong support for this excellent 
legislation.
  Mr. Speaker, I yield back the balance of my time.
  Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, I yield myself such time 
as I may consume.
  H.R. 2559 has strong bipartisan support. The Office of Personnel 
Management and long-term care insurers also support it. It will 
substantially improve the Federal Government's long-term care insurance 
program, and I urge all Members to support this measure.
  Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Petri). The question is on the motion 
offered by the gentlewoman from Virginia (Mrs. Jo Ann Davis) that the 
House suspend the rules and pass the bill, H.R. 2559.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mrs. JO ANN DAVIS of Virginia. Mr. Speaker, on that I demand the yeas 
and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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