II 

111TH CONGRESS 

2D SESSION S. 2958 

To provide funding and incentives for caregiver support and long-term care 

assistance. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 27, 2010 

Mr. MENENDEZ introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To provide funding and incentives for caregiver support and 

long-term care assistance. 

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 ‘‘Caregiver Assistance 

5 and Relief Effort Act of 2010’’ or as the ‘‘CARE Act of 

6 2010’’. 

7 SEC. 2. INCREASED FUNDING FOR NATIONAL FAMILY 

8 CAREGIVER SUPPORT PROGRAM. 

9 (a) IN GENERAL.—Section 303(e)(2) of the Older 

10 Americans Act of 1965 (42 U.S.C. 3023(e)) is amended 


dcolon on DSK2BSOYB1PROD with BILLS
2 

•S 2958 IS

1 by striking ‘‘$187,000,000 for fiscal year 2011’’ and in2 serting ‘‘$250,000,000 for each of fiscal year 2011 

3 through 2014’’. 

4 (b) NATIVE AMERICANS.—Section 643(2) of the 

5 Older Americans Act of 1965 (42 U.S.C. 3057n(2)) is 

6 amended by striking ‘‘$7,900,000 for fiscal year 2011’’ 

7 and inserting ‘‘$10,000,000 for each of fiscal years 2011 

8 through 2014.’’. 

9 SEC. 3. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE 

10 NEEDS. 

11 (a) IN GENERAL.—Subpart C of part IV of sub12 chapter A of chapter 1 of the Internal Revenue Code of 

13 1986 (relating to refundable credits) is amended by insert14 ing after section 36A the following new section: 

15 ‘‘SEC. 36B. CREDIT FOR TAXPAYERS WITH LONG-TERM 

16 CARE NEEDS. 

17 ‘‘(a) ALLOWANCE OF CREDIT.— 

18 ‘‘(1) IN GENERAL.—There shall be allowed as a 

19 credit against the tax imposed by this chapter for 

20 the taxable year an amount equal to the applicable 

21 amount multiplied by the number of applicable indi22 viduals with respect to whom the taxpayer is an eli23 gible caregiver for the taxable year. 


dcolon on DSK2BSOYB1PROD with BILLS
3 

•S 2958 IS

1 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

2 paragraph (1), the applicable amount shall be deter3 mined in accordance with the following table: 

‘‘2010 ........................................................................................... $2,500

2011 ........................................................................................... $2,750

2012 or thereafter ..................................................................... $3,000. 

4 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN5 COME.— 

6 ‘‘(1) IN GENERAL.—The amount of the credit 

7 allowable under subsection (a) shall be reduced (but 

8 not below zero) by $100 for each $1,000 (or fraction 

9 thereof) by which the taxpayer’s modified adjusted 

10 gross income exceeds the threshold amount. For 

11 purposes of the preceding sentence, the term ‘modi12 fied adjusted gross income’ means adjusted gross in13 come increased by any amount excluded from gross 

14 income under section 911, 931, or 933. 

15 ‘‘(2) THRESHOLD AMOUNT.—For purposes of 

16 paragraph (1), the term ‘threshold amount’ means 

17 $75,000 (twice such amount in the case of joint re18 turn). 

19 ‘‘(3) INDEXING.—In the case of any taxable 

20 year beginning in a calendar year after 2010, the 

21 $75,000 amount contained in paragraph (2) shall be 

22 increased by an amount equal to the product of— 

23 ‘‘(A) such dollar amount, and 


dcolon on DSK2BSOYB1PROD with BILLS
4 

•S 2958 IS

1 ‘‘(B) the medical care cost adjustment de2 termined under section 213(d)(10)(B)(ii) for 

3 the calendar year in which the taxable year be4 gins, determined by substituting ‘2009’ for 

5 ‘1996’ in subclause (II) thereof. 

6 If any increase determined under the preceding sen7 tence is not a multiple of $50, such increase shall 

8 be rounded to the next lowest multiple of $50. 

9 ‘‘(c) DEFINITIONS.—For purposes of this section— 

10 ‘‘(1) APPLICABLE INDIVIDUAL.— 

11 ‘‘(A) IN GENERAL.—The term ‘applicable 

12 individual’ means, with respect to any taxable 

13 year, any individual who has been certified, be14 fore the due date for filing the return of tax for 

15 the taxable year (without extensions), by a phy16 sician (as defined in section 1861(r)(1) of the 

17 Social Security Act) as being an individual with 

18 long-term care needs described in subparagraph 

19 (B) for a period— 

20 ‘‘(i) which is at least 180 consecutive 

21 days, and 

22 ‘‘(ii) a portion of which occurs within 

23 the taxable year. 

24 Such term shall not include any individual oth25 erwise meeting the requirements of the preVerDate Nov 24 2008 02:51 Jan 28, 2010 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2958.IS S2958

dcolon on DSK2BSOYB1PROD with BILLS
5 

•S 2958 IS

ceding sentence unless within the 391 1 ⁄2 month 

2 period ending on such due date (or such other 

3 period as the Secretary prescribes) a physician 

4 (as so defined) has certified that such indi5 vidual meets such requirements. 

6 ‘‘(B) INDIVIDUALS WITH LONG-TERM CARE

7 NEEDS.—An individual is described in this sub8 paragraph if the individual meets any of the fol9 lowing requirements: 

10 ‘‘(i) The individual is at least 18 years 

11 of age and— 

12 ‘‘(I) is unable to perform (with13 out substantial assistance from an14 other individual) at least 3 activities 

15 of daily living (as defined in section 

16 7702B(c)(2)(B)) due to a loss of 

17 functional capacity, or 

18 ‘‘(II) requires substantial super19 vision to protect such individual from 

20 threats to health and safety due to se21 vere cognitive impairment and is un22 able to perform at least 1 activity of 

23 daily living (as so defined) or to the 

24 extent provided in regulations pre25 scribed by the Secretary (in consultaVerDate Nov 24 2008 02:51 Jan 28, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2958.IS S2958

dcolon on DSK2BSOYB1PROD with BILLS
6 

•S 2958 IS

1 tion with the Secretary of Health and 

2 Human Services), is unable to engage 

3 in age appropriate activities. 

4 ‘‘(ii) The individual is at least 6 but 

5 not 18 years of age and— 

6 ‘‘(I) is unable to perform (with7 out substantial assistance from an8 other individual) at least 3 activities 

9 of daily living (as defined in section 

10 7702B(c)(2)(B)) due to a loss of 

11 functional capacity, 

12 ‘‘(II) requires substantial super13 vision to protect such individual from 

14 threats to health and safety due to se15 vere cognitive impairment and is un16 able to perform at least 1 activity of 

17 daily living (as so defined) or to the 

18 extent provided in regulations pre19 scribed by the Secretary (in consulta20 tion with the Secretary of Health and 

21 Human Services), is unable to engage 

22 in age appropriate activities, 

23 ‘‘(III) has a level of disability 

24 similar to the level of disability de25 scribed in subclause (I) (as deterVerDate Nov 24 2008 02:51 Jan 28, 2010 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2958.IS S2958

dcolon on DSK2BSOYB1PROD with BILLS
7 

•S 2958 IS

1 mined under regulations promulgated 

2 by the Secretary), or 

3 ‘‘(IV) has a complex medical con4 dition (as defined by the Secretary) 

5 that requires medical management 

6 and coordination of care. 

7 ‘‘(iii) The individual is at least 2 but 

8 not 6 years of age and— 

9 ‘‘(I) is unable due to a loss of 

10 functional capacity to perform (with11 out substantial assistance from an12 other individual) at least 2 of the fol13 lowing activities: eating, transferring, 

14 or mobility, 

15 ‘‘(II) has a level of disability 

16 similar to the level of disability de17 scribed in subclause (I) (as deter18 mined under regulations promulgated 

19 by the Secretary), or 

20 ‘‘(III) has a complex medical con21 dition (as defined by the Secretary) 

22 that requires medical management 

23 and coordination of care. 

24 ‘‘(iv) The individual is under 2 years 

25 of age and— 


dcolon on DSK2BSOYB1PROD with BILLS
8 

•S 2958 IS

1 ‘‘(I) requires specific durable 

2 medical equipment by reason of a se3 vere health condition or requires a 

4 skilled practitioner trained to address 

5 the individual’s condition to be avail6 able if the individual’s parents or 

7 guardians are absent, 

8 ‘‘(II) has a level of disability 

9 similar to the level of disability de10 scribed in subclause (I) (as deter11 mined under regulations promulgated 

12 by the Secretary), or 

13 ‘‘(III) has a complex medical con14 dition (as defined by the Secretary) 

15 that requires medical management 

16 and coordination of care. 

17 ‘‘(v) The individual has 5 or more 

18 chronic conditions (as defined in subpara19 graph (C)) and is unable to perform (with20 out substantial assistance from another in21 dividual) at least 1 activity of daily living 

22 (as so defined) due to a loss of functional 

23 capacity. 

24 ‘‘(C) CHRONIC CONDITION.—For purposes 

25 of this paragraph, the term ‘chronic condition’ 


dcolon on DSK2BSOYB1PROD with BILLS
9 

•S 2958 IS

1 means a condition that lasts for at least 6 con2 secutive months and requires ongoing medical 

3 care. 

4 ‘‘(2) ELIGIBLE CAREGIVER.—A taxpayer shall 

5 be treated as an eligible caregiver for any taxable 

6 year with respect to the taxpayer and the taxpayer’s 

7 spouse and dependents. A taxpayer shall not be 

8 treated as an eligible caregiver with respect to him9 self for any taxable year beginning in any calendar 

10 year if any other person is an eligible caregiver with 

11 respect to the taxpayer for a taxable year which be12 gins in such calendar year. 

13 ‘‘(d) IDENTIFICATION REQUIREMENT.—No credit 

14 shall be allowed under this section to a taxpayer with re15 spect to any applicable individual unless the taxpayer in16 cludes the name and taxpayer identification number of 

17 such individual, and the identification number of the phy18 sician certifying such individual, on the return of tax for 

19 the taxable year. 

20 ‘‘(e) TAXABLE YEAR MUST BE FULL TAXABLE

21 YEAR.—Except in the case of a taxable year closed by rea22 son of the death of the taxpayer, no credit shall be allow23 able under this section in the case of a taxable year cov24 ering a period of less than 12 months.’’. 

25 (b) CONFORMING AMENDMENTS.— 


dcolon on DSK2BSOYB1PROD with BILLS
10 

•S 2958 IS

1 (1) Section 6213(g)(2) of the Internal Revenue 

2 Code of 1986 is amended by striking ‘‘and’’ at the 

3 end of subparagraph (O), by striking the period at 

4 the end of subparagraph (P) and inserting ‘‘, and’’, 

5 and by inserting after subparagraph (P) the fol6 lowing new subparagraph: 

7 ‘‘(Q) an omission of a correct TIN or phy8 sician identification required under section 

9 36B(d) (relating to credit for taxpayers with 

10 long-term care needs) to be included on a re11 turn.’’. 

12 (2) The table of sections for subpart C of part 

13 IV of subchapter A of chapter 1 of such Code is 

14 amended by inserting before the item relating to sec15 tion 37 the following new item: 

‘‘Sec. 36B. Credit for taxpayers with long-term care needs.’’. 

16 (3) Section 1324(b)(2) of title 31, United 

17 States Code, is amended by inserting ‘‘36B,’’ after 

18 ‘‘section 36A,’’. 

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2009. 

22 SEC. 4. TREATMENT OF PREMIUMS ON QUALIFIED LONG23 TERM CARE INSURANCE CONTRACTS. 

24 (a) IN GENERAL.—Part VII of subchapter B of chap25 ter 1 of the Internal Revenue Code of 1986 (relating to 


dcolon on DSK2BSOYB1PROD with BILLS
11 

•S 2958 IS

1 additional itemized deductions) is amended by redesig2 nating section 224 as section 225 and by inserting after 

3 section 223 the following new section: 

4 ‘‘SEC. 224. PREMIUMS ON QUALIFIED LONG-TERM CARE IN5 SURANCE CONTRACTS. 

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

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

8 the applicable percentage of the amount of eligible long9 term care premiums (as defined in section 213(d)(10)) 

10 paid during the taxable year for coverage for the taxpayer 

11 and the taxpayer’s spouse and dependents under a quali12 fied long-term care insurance contract (as defined in sec13 tion 7702B(b)). 

14 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

15 subsection (a)— 

16 ‘‘(1) IN GENERAL.—Except as otherwise pro17 vided in this subsection, the applicable percentage 

18 shall be determined in accordance with the following 

19 table based on the number of years of continuous 

20 coverage (as of the close of the taxable year) of the 

21 individual under any qualified long-term care insur22 ance contracts (as defined in section 7702B(b)): 

‘‘If the number of years of The applicable 

continuous coverage is— percentage is— 

Less than 1 ........................................................................................ 60

At least 1 but less than 2 .................................................................. 70

At least 2 but less than 3 .................................................................. 80

At least 3 but less than 4 .................................................................. 90

At least 4 ........................................................................................... 100. 


dcolon on DSK2BSOYB1PROD with BILLS
12 

•S 2958 IS

1 ‘‘(2) SPECIAL RULES FOR INDIVIDUALS WHO

2 HAVE ATTAINED AGE 55.—In the case of an indi3 vidual who has attained age 55 as of the close of the 

4 taxable year, the following table shall be substituted 

5 for the table in paragraph (1): 

‘‘If the number of years of The applicable 

continuous coverage is— percentage is— 

Less than 1 ........................................................................................ 70

At least 1 but less than 2 .................................................................. 85

At least 2 ........................................................................................... 100. 

6 ‘‘(3) ONLY COVERAGE AFTER 2009 TAKEN INTO

7 ACCOUNT.—Only coverage for periods after Decem8 ber 31, 2009, shall be taken into account under this 

9 subsection. 

10 ‘‘(4) CONTINUOUS COVERAGE.—An individual 

11 shall not fail to be treated as having continuous cov12 erage if the aggregate breaks in coverage during any 

13 1-year period are less than 60 days. 

14 ‘‘(c) COORDINATION WITH OTHER DEDUCTIONS.— 

15 Any amount paid by a taxpayer for any qualified long16 term care insurance contract to which subsection (a) ap17 plies shall not be taken into account in computing the 

18 amount allowable to the taxpayer as a deduction under 

19 section 162(l) or 213(a).’’. 

20 (b) CONFORMING AMENDMENTS.— 

21 (1) Section 62(a) of the Internal Revenue Code 

22 of 1986 is amended by inserting before the last sen23 tence the following new paragraph: 


dcolon on DSK2BSOYB1PROD with BILLS
13 

•S 2958 IS

1 ‘‘(22) PREMIUMS ON QUALIFIED LONG-TERM

2 CARE INSURANCE CONTRACTS.—The deduction al3 lowed by section 224.’’. 

4 (2) The table of sections for part VII of sub5 chapter B of chapter 1 of such Code is amended by 

6 redesignating the item relating to section 224 as an 

7 item relating to section 225 and by inserting before 

8 such item the following new item: 

‘‘Sec. 224. Premiums on qualified long-term care insurance contracts.’’. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2009. 

12 SEC. 5. ADDITIONAL CONSUMER PROTECTIONS FOR LONG13 TERM CARE INSURANCE. 

14 (a) ADDITIONAL PROTECTIONS APPLICABLE TO

15 LONG-TERM CARE INSURANCE.—Subparagraphs (A) and 

16 (B) of section 7702B(g)(2) of the Internal Revenue Code 

17 of 1986 (relating to requirements of model regulation and 

18 Act) are amended to read as follows: 

19 ‘‘(A) IN GENERAL.—The requirements of 

20 this paragraph are met with respect to any con21 tract if such contract meets— 

22 ‘‘(i) MODEL REGULATION.—The fol23 lowing requirements of the model regula24 tion: 


dcolon on DSK2BSOYB1PROD with BILLS
14 

•S 2958 IS

1 ‘‘(I) Section 6A (relating to guar2 anteed renewal or noncancellability), 

3 other than paragraph (5) thereof, and 

4 the requirements of section 6B of the 

5 model Act relating to such section 6A. 

6 ‘‘(II) Section 6B (relating to pro7 hibitions on limitations and exclu8 sions) other than paragraph (7) there9 of. 

10 ‘‘(III) Section 6C (relating to ex11 tension of benefits). 

12 ‘‘(IV) Section 6D (relating to 

13 continuation or conversion of cov14 erage). 

15 ‘‘(V) Section 6E (relating to dis16 continuance and replacement of poli17 cies). 

18 ‘‘(VI) Section 7 (relating to unin19 tentional lapse). 

20 ‘‘(VII) Section 8 (relating to dis21 closure), other than sections 8F, 8G, 

22 8H, and 8I thereof. 

23 ‘‘(VIII) Section 11 (relating to 

24 prohibitions against post-claims un25 derwriting). 


dcolon on DSK2BSOYB1PROD with BILLS
15 

•S 2958 IS

1 ‘‘(IX) Section 12 (relating to 

2 minimum standards). 

3 ‘‘(X) Section 13 (relating to re4 quirement to offer inflation protec5 tion). 

6 ‘‘(XI) Section 25 (relating to pro7 hibition against preexisting conditions 

8 and probationary periods in replace9 ment policies or certificates). 

10 ‘‘(XII) The provisions of section 

11 26 relating to contingent nonforfeiture 

12 benefits, if the policyholder declines 

13 the offer of a nonforfeiture provision 

14 described in paragraph (4). 

15 ‘‘(ii) MODEL ACT.—The following re16 quirements of the model Act: 

17 ‘‘(I) Section 6C (relating to pre18 existing conditions). 

19 ‘‘(II) Section 6D (relating to 

20 prior hospitalization). 

21 ‘‘(III) The provisions of section 8 

22 relating to contingent nonforfeiture 

23 benefits, if the policyholder declines 

24 the offer of a nonforfeiture provision 

25 described in paragraph (4). 


dcolon on DSK2BSOYB1PROD with BILLS
16 

•S 2958 IS

1 ‘‘(B) DEFINITIONS.—For purposes of this 

2 paragraph— 

3 ‘‘(i) MODEL PROVISIONS.—The terms 

4 ‘model regulation’ and ‘model Act’ mean 

5 the long-term care insurance model regula6 tion, and the long-term care insurance 

7 model Act, respectively, promulgated by 

8 the National Association of Insurance 

9 Commissioners (as adopted as of October 

10 2000). 

11 ‘‘(ii) COORDINATION.—Any provision 

12 of the model regulation or model Act listed 

13 under clause (i) or (ii) of subparagraph 

14 (A) shall be treated as including any other 

15 provision of such regulation or Act nec16 essary to implement the provision. 

17 ‘‘(iii) DETERMINATION.—For pur18 poses of this section and section 4980C, 

19 the determination of whether any require20 ment of a model regulation or the model 

21 Act has been met shall be made by the 

22 Secretary.’’. 

23 (b) EXCISE TAX.—Paragraph (1) of section 

24 4980C(c) of the Internal Revenue Code of 1986 (relating 


dcolon on DSK2BSOYB1PROD with BILLS
17 

•S 2958 IS

1 to requirements of model provisions) is amended to read 

2 as follows: 

3 ‘‘(1) REQUIREMENTS OF MODEL PROVISIONS.— 

4 ‘‘(A) MODEL REGULATION.—The following 

5 requirements of the model regulation must be 

6 met: 

7 ‘‘(i) Section 9 (relating to required 

8 disclosure of rating practices to consumer). 

9 ‘‘(ii) Section 14 (relating to applica10 tion forms and replacement coverage). 

11 ‘‘(iii) Section 15 (relating to reporting 

12 requirements). 

13 ‘‘(iv) Section 22 (relating to filing re14 quirements for marketing). 

15 ‘‘(v) Section 23 (relating to standards 

16 for marketing), including inaccurate com17 pletion of medical histories, other than 

18 paragraphs (1), (6), and (9) of section 

19 23C. 

20 ‘‘(vi) Section 24 (relating to suit21 ability). 

22 ‘‘(vii) Section 29 (relating to standard 

23 format outline of coverage). 

24 ‘‘(viii) Section 30 (relating to require25 ment to deliver shopper’s guide). 


dcolon on DSK2BSOYB1PROD with BILLS
18 

•S 2958 IS

1 The requirements referred to in clause (vi) shall 

2 not include those portions of the personal work3 sheet described in appendix B relating to con4 sumer protection requirements not imposed by 

5 section 4980C or 7702B. 

6 ‘‘(B) MODEL ACT.—The following require7 ments of the model Act must be met: 

8 ‘‘(i) Section 6F (relating to right to 

9 return). 

10 ‘‘(ii) Section 6G (relating to outline of 

11 coverage). 

12 ‘‘(iii) Section 6H (relating to require13 ments for certificates under group plans). 

14 ‘‘(iv) Section 6J (relating to policy 

15 summary). 

16 ‘‘(v) Section 6K (relating to monthly 

17 reports on accelerated death benefits). 

18 ‘‘(vi) Section 7 (relating to incontest19 ability period). 

20 ‘‘(C) DEFINITIONS.—For purposes of this 

21 paragraph, the terms ‘model regulation’ and 

22 ‘model Act’ have the meanings given such terms 

23 by section 7702B(g)(2)(B).’’. 


dcolon on DSK2BSOYB1PROD with BILLS
19 

•S 2958 IS

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

2 this section shall apply to policies issued more than 1 year 

3 after the date of the enactment of this Act. 

Æ 


dcolon on DSK2BSOYB1PROD with BILLS