A bill to develop a model disclosure form to assist consumers in purchasing long-term care insurance.

Summary: Long-Term Care Insurance Consumer Right-to-Know Act of 2009 - Directs the Secretary of Health and Human Services (HHS) to request the National Association of Insurance Commissioners (NAIC) to issue a white paper with its results from the following activities: (1) review and describe disclosure requirements for long-term care insurance policies under the long-term care insurance model regulation and model act promulgated by NAIC (as adopted as of October 2000 and December 2006), (2) review and describe disclosure requirements for long-term care insurance policies under state laws, (3) review and describe differences in long-term care services among states and develop a standardized definition of long-term care services, and (4) identify and describe key issues to consider in the development of a proposed model form for marketing long-term care insurance policies.

Directs the Secretary to request NAIC to: (1) establish a Working Group to develop and issue a model disclosure form for marketing long-term care insurance policies, and (2) amend the model regulation and model act to require the use of such form.

Requires the Secretaries of the Treasury and HHS to promulgate regulations requiring issuers of a qualified long-term care insurance contract under certain tax-qualified or Medicaid Partnership policies to use the model form for marketing such contracts.

Directs each state to require any issuer of a long-term care insurance policy to use the model form for marketing a policy.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Long-Term Care Insurance Consumer 
Right-to-Know Act of 2009''.

SEC. 2. DEFINITIONS.

    In 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) Model act and regulation.--The term ``model Act and 
        regulation'' means the long-term care insurance model 
        regulation, and the long-term care insurance model Act, 
        respectively, promulgated by the National Association of 
        Insurance Commissioners (as adopted as of October 2000 and as 
        of December 2006).
            (3) NAIC.--The term ``NAIC'' means the National Association 
        of Insurance Commissioners.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (5) 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.

SEC. 3. NAIC STUDY AND REPORT ON STATE DISCLOSURE REQUIREMENTS FOR 
              LONG-TERM CARE INSURANCE.

    (a) In General.--The Secretary shall request the NAIC to carry out 
the activities described in subsection (b) and issue the report 
described in subsection (c).
    (b) Review and Development of Proposed Model Disclosure 
Requirements.--The activities described in this subsection are the 
following:
            (1) Model act and regulation disclosure requirements.--
        Review and describe disclosure requirements for long-term care 
        insurance policies under the Model Act and regulation.
            (2) State law disclosure requirements.--Review and describe 
        disclosure requirements for long-term care insurance policies 
        under State laws.
            (3) Long-term care services.--Review and describe 
        differences in long-term care services, including with respect 
        to providers of such services and the settings in which such 
        services are provided among States and develop a standardized 
        definition for long-term care services.
            (4) Identification of key issues for development of model 
        disclosure marketing form.--Identify and describe key issues to 
        consider in the development of a proposed model form for 
        marketing long-term care insurance policies.
    (c) Report.--The report described in this subsection is a NAIC 
White Paper that is issued not later than 12 months after the date of 
enactment of this Act and contains the results of the reviews conducted 
under subsection (a) and the descriptions required under that 
subsection.

SEC. 4. NAIC WORKING GROUP TO DEVELOP MODEL DISCLOSURE FORM FOR LONG-
              TERM CARE INSURANCE.

    (a) In General.--The Secretary shall request the NAIC to establish, 
not later than 60 days after the date on which the NAIC White Paper 
described in section 3(c) is issued and in consultation with the 
Secretary and the Secretary of the Treasury, a Working Group to develop 
a model disclosure form for marketing long-term care insurance 
policies.
    (b) Working Group Members.--The Working Group established under 
subsection (a) shall be composed of the following:
            (1) Representatives from State Departments of Health (or 
        the most appropriate State agencies with responsibility for 
        oversight of the provision of long-term care).
            (2) Representatives of long-term care providers and 
        facilities.
            (3) Consumer advocates.
            (4) Representatives of issuers of long-term care insurance 
        policies.
            (5) Representatives of the NAIC or State insurance 
        commissioners.
            (6) Other experts in long-term care and long-term care 
        insurance policies selected by the Secretary and Secretary of 
        the Treasury or the NAIC.
    (c) Requirements for Development of Form.--
            (1) Considerations.--In developing the model form, the 
        Working Group shall consider the following:
                    (A) Variations among providers, services, and 
                facilities in the long-term care and long-term care 
                insurance markets.
                    (B) The results of the reviews and the descriptions 
                included in the NAIC White Paper issued under section 
                3(c).
                    (C) Such other information and factors as the 
                Working Group determines appropriate.
            (2) Standardizations.--The Working Group shall ensure that 
        the model has--
                    (A) minimum standard definitions for coverage of 
                the various types of services and benefits provided 
                under long-term care insurance policies;
                    (B) minimum standard language for use by issuers of 
                such policies, and for agents selling such policies, in 
                explaining the services and benefits covered under the 
                policies and restrictions on the services and benefits;
                    (C) minimum standard format, color and type size 
                for disclosure documents; and
                    (D) such other minimum standards as the Working 
                Group determines appropriate.
    (d) Deadline for Development.--The Working Group shall issue a 
proposed model disclosure form for marketing long-term care insurance 
policies not later than 1 year after the date on which the Working 
Group is established.
    (e) Adoption and Incorporation Into Model Act and Regulation.--The 
Secretary shall request the NAIC to amend the Model Act and regulation 
to require the use of the proposed model disclosure form issued by the 
Working Group, not later than 1 year after the date on which the 
Working Group issues the form.

SEC. 5. 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 Working 
Group issues the proposed model disclosure form for marketing long-term 
care insurance policies under section 4:
            (1) Tax-qualified policies.--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.
            (2) Medicaid partnership policies.--The Secretary 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.
    (b) Application to All Other Long-term Care Insurance Policies.--
Not later than 18 months, or the earliest date on which an amendment 
could be enacted for those States with legislatures which meet only 
every other year, after the date on which the NAIC adopts an amended 
Model Act and regulation to require the use of the proposed model 
disclosure form issued by the Working Group under section 4, each State 
shall require by statute or regulation any issuer of a long-term care 
insurance policy to use the proposed model disclosure form when 
marketing such a policy in the State.