II

106TH CONGRESS

1ST SESSION S. 35

To amend the Internal Revenue Code of 1986 to allow a deduction for

the long-term care insurance costs of all individuals who are not eligible

to participate in employer-subsidized long-term care health plans.

IN THE SENATE OF THE UNITED STATES

JANUARY 19, 1999

Mr. GRASSLEY (for himself, Mr. GRAHAM, and Mr. BREAUX) introduced the

following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to allow a

deduction for the long-term care insurance costs of all

individuals who are not eligible to participate in employer-subsidized long-term care health plans.

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 ‘‘Long-Term Care Af5 fordability and Availability Act of 1999’’.
2

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1 SEC. 2. DEDUCTION FOR LONG-TERM CARE HEALTH INSUR2 ANCE COSTS FOR INDIVIDUALS NOT ELIGI3 BLE TO PARTICIPATE IN EMPLOYER-SUB4 SIDIZED LONG-TERM CARE HEALTH PLANS.

5 (a) IN GENERAL.—Part VII of subchapter B of chap6 ter 1 of the Internal Revenue Code of 1986 (relating to

7 additional itemized deductions) is amended by redesignat8 ing section 222 as section 223 and by inserting after sec9 tion 221 the following new section:

10 ‘‘SEC. 222. QUALIFIED LONG-TERM CARE INSURANCE

11 COSTS.

12 ‘‘(a) IN GENERAL.—In the case of an individual,

13 there shall be allowed as a deduction an amount equal to

14 the amount of the eligible long-term care premiums (as

15 defined in section 213(d)(10)) paid during the taxable

16 year for coverage of the taxpayer and the spouse and de17 pendents of the taxpayer.

18 ‘‘(b) LIMITATION BASED ON OTHER COVERAGE.—

19 Subsection (a) shall not apply to any taxpayer for any cal20 endar month for which the taxpayer is eligible to partici21 pate in any subsidized long-term care plan maintained by

22 any employer of the taxpayer or of the spouse of the tax23 payer. For purposes of the preceding sentence, the term

24 ‘subsidized long-term care plan’ means a subsidized health

25 plan which includes primarily coverage for qualified long26 term care services (as defined in section 7702B(c)) or is
3

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1 a qualified long-term care insurance contract (as defined

2 in section 7702B(b)).

3 ‘‘(c) SPECIAL RULES.—

4 ‘‘(1) COORDINATION WITH MEDICAL DEDUC5 TION.—Any amount paid by a taxpayer for insur6 ance to which subsection (a) applies shall not be

7 taken into account in computing the amount allow8 able to the taxpayer as a deduction under section

9 213(a).

10 ‘‘(2) DEDUCTION NOT ALLOWED FOR SELF-EM11 PLOYMENT TAX PURPOSES.—The deduction allow12 able by reason of this section shall not be taken into

13 account in determining an individual’s net earnings

14 from self-employment (within the meaning of section

15 1402(a)) for purposes of chapter 2.’’

16 (b) CONFORMING AMENDMENTS.—

17 (1) Subparagraph (C) of section 162(l)(2) of

18 such Code is amended to read as follows:

19 ‘‘(C) LONG-TERM CARE PREMIUMS.—No

20 deduction shall be allowed under this subsection

21 for premiums on any qualified long-term care

22 insurance contract (as defined in section

23 7702B(b)).’’
4

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1 (2) Subsection (a) of section 62 of such Code

2 is amended by inserting after paragraph (17) the

3 following new paragraph:

4 ‘‘(18) LONG-TERM CARE INSURANCE COSTS OF

5 CERTAIN INDIVIDUALS.—The deduction allowed by

6 section 222.’’

7 (3) The table of sections for part VII of sub8 chapter B of chapter 1 of such Code is amended by

9 striking the last item and inserting the following

10 new items:

‘‘Sec. 222. Qualified long-term care insurance costs.

‘‘Sec. 223. Cross reference.’’

11 (c) EFFECTIVE DATE.—The amendments made by

12 this section shall apply to taxable years beginning after

13 December 31, 1998.

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