II 

109TH CONGRESS 

1ST SESSION S. 1569 

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. 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Long-Term Care 

5 Partnership Act of 2005’’. 
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•S 1569 IS

1 SEC. 2. ALLOWANCE OF ADDITIONAL STATE LONG-TERM 

2 CARE PARTNERSHIPS. 

3 (a) IN GENERAL.—Section 1917(b) of the Social Se4 curity Act (42 U.S.C. 1396(b)) is amended— 

5 (1) in paragraph (1)(C)(i), by striking ‘‘shall 

6 seek adjustment’’ and inserting ‘‘may seek adjust7 ment’’; 

8 (2) in paragraph (1)(C)(ii), by inserting ‘‘Quali9 fied State Long-Term Care Insurance Partnership 

10 or under a’’ after ‘‘Clause (i) shall not apply in the 

11 case of an individual who received medical assistance 

12 under a’’; and 

13 (3) in paragraph (4)(B), by striking ‘‘(and shall 

14 include, in the case of an individual to whom para15 graph (1)(C)(i) applies)’’. 

16 (b) DEFINITION OF A QUALIFIED STATE LONG17 TERM CARE INSURANCE PARTNERSHIP.—Section 1917(e) 

18 of the Social Security Act (42 U.S.C. 1396p(e)) is amend19 ed by inserting at the end the following: 

20 ‘‘(6) The term ‘Qualified State Long-Term 

21 Care Insurance Partnership’ means a State plan 

22 amendment that provides for the disregard of any 

23 assets or resources in an amount equal to the insur24 ance benefits payments that are made under a long25 term care insurance policy (including a certificate 
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1 issued under a group insurance contract), but only 

2 if— 

3 ‘‘(A) the policy covers an insured who, at 

4 the time coverage under the policy first becomes 

5 effective, is a resident of such State or of a 

6 State that maintains a Qualified Long-Term 

7 Care Insurance Partnership; 

8 ‘‘(B) the policy is a qualified long-term 

9 care insurance contract within the meaning of 

10 section 7702B(b) of the Internal Revenue Code 

11 of 1986; 

12 ‘‘(C) the policy provides some level of infla13 tion protection; 

14 ‘‘(D) the policy satisfies any requirements 

15 of State or other applicable law that apply to a 

16 long-term care insurance policy; and 

17 ‘‘(E) the issuer of the policy reports— 

18 ‘‘(i) to the Secretary, such informa19 tion or data as the Secretary may require; 

20 and 

21 ‘‘(ii) to the State, the information or 

22 data reported to the Secretary (if any), the 

23 information or data required under the 

24 minimum reporting requirements developed 

25 under section 2(c)(1) of the State Long- 
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•S 1569 IS

1 Term Care Partnership Act of 2005, and 

2 such additional information or data as the 

3 State may require. 

4 For purposes of applying this paragraph, if a long5 term care insurance policy is exchanged for another 

6 such policy, the date coverage became effective 

7 under the first policy shall determine when coverage 

8 first becomes effective.’’. 

9 (c) REGULATORY AUTHORITY.—Not later than 6 

10 months after the date of enactment of this Act, the Sec11 retary of Health and Human Services (in this subsection 

12 and subsection (d) referred to as the ‘‘Secretary’’), in con13 sultation with the National Association of Insurance Com14 missioners, issuers of long-term care insurance policies, 

15 States with experience with long-term care insurance part16 nership plans, and other States, shall develop the following 

17 requirements and standards: 

18 (1) MINIMUM, CONSISTENT REPORTING RE19 QUIREMENTS.— 

20 (A) IN GENERAL.—Minimum reporting re21 quirements for issuers of long-term care insur22 ance policies under Qualified State Long-Term 

23 Care Insurance Partnerships that shall specify 

24 the data and information that each such issuer 

25 shall report to the State with which it has such 
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1 a partnership. The requirements developed in 

2 accordance with this paragraph shall specify the 

3 type and format of the data and information to 

4 be reported and the frequency with which such 

5 reports are to be made. 

6 (B) STATE REQUIRED DATA.—Nothing in 

7 subparagraph (A) shall be construed as prohib8 iting a State from requiring an issuer of a long9 term care insurance policy sold in the State (re10 gardless of whether the policy is issued under a 

11 Qualified State Long-Term Care Insurance 

12 Partnership) to require the issuer to report 

13 State information or data to the State that is 

14 in addition to the information or data required 

15 under the minimum reporting requirements de16 veloped under that subparagraph. 

17 (2) RECIPROCITY STANDARDS.—Standards for 

18 ensuring that long-term care insurance policies 

19 issued under a Qualified State Long-Term Care In20 surance Partnership are portable to other States 

21 with such a partnership. 

22 (d) CONSUMER EDUCATION.—The Secretary shall es23 tablish procedures for educating consumers regarding 

24 Qualified State Long-Term Care Insurance Partnerships 
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1 and long-term care insurance policies issued in connection 

2 with such partnerships. 

3 (e) ANNUAL REPORTS TO CONGRESS.—The Sec4 retary shall annually report to Congress on the Qualified 

5 State Long-Term Care Insurance Partnerships established 

6 in accordance with subsections (b)(1)(C)(ii) and (e)(6) of 

7 section 1917 of the Social Security Act (42 U.S.C. 1396p). 

8 (f) EFFECTIVE DATE.—The amendments made by 

9 subsections (a) and (b) take effect on October 1, 2005. 

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