I

103D CONGRESS

1ST SESSION H. R. 2816

To amend the Internal Revenue Code of 1986 with respect to the treatment

of long-term care insurance policies, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 30, 1993

Mrs. JOHNSON of Connecticut (for herself, Mr. GOSS, Mr. BILIRAKIS, and Mr.

SUNDQUIST) introduced the following bill; which was referred jointly to

the Committees on Ways and Means and Energy and Commerce

A BILL

To amend the Internal Revenue Code of 1986 with respect

to the treatment of long-term care insurance policies,

and for other purposes.

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; TABLE OF CONTENTS.

4 (a) IN GENERAL.—This Act may be cited as the

5 ‘‘Long-Term Care Security Act of 1993’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:

Section 1. Short title; table of contents.

TITLE I—TAX TREATMENT OF LONG-TERM CARE INSURANCE

Sec. 101. Treatment of long-term care insurance or plans.
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Sec. 102. Exclusion for benefits provided under long-term care insurance; inclusion of employer-provided coverage.

Sec. 103. Qualified long-term services treated as medical care.

Sec. 104. Certain exchanges of life insurance contracts for long-term care insurance contracts not taxable.

Sec. 105. Exclusion from gross income for amounts withdrawn from individual

retirement plans or 401(k) plans for long-term care insurance.

Sec. 106. Tax treatment of accelerated death benefits under life insurance contracts.

Sec. 107. Effective date.

TITLE II—PROTECTION OF ASSETS UNDER MEDICAID THROUGH

USE OF QUALIFIED LONG-TERM CARE INSURANCE

Sec. 201. Protection of assets through use of qualified long-term care insurance.

1 TITLE I—TAX TREATMENT OF

2 LONG-TERM CARE INSURANCE

3 SEC. 101. TREATMENT OF LONG-TERM CARE INSURANCE

4 OR PLANS.

5 (a) GENERAL RULE.—Subpart E of part I of sub6 chapter L of chapter 1 of the Internal Revenue Code of

7 1986 is amended by inserting after section 818 the follow8 ing new section:

9 ‘‘SEC. 818A. TREATMENT OF LONG-TERM CARE INSURANCE

10 OR PLANS.

11 ‘‘(a) GENERAL RULE.—For purposes of this part, a

12 long-term care insurance contract shall be treated as an

13 accident or health insurance contract.

14 ‘‘(b) LONG-TERM CARE INSURANCE CONTRACT.—

15 ‘‘(1) IN GENERAL.—For purposes of this part,

16 the term ‘long-term care insurance contract’ means

17 any insurance contract issued if—
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1 ‘‘(A) the only insurance protection pro2 vided under such contract is coverage of quali3 fied long-term care services and benefits inci4 dental to such coverage,

5 ‘‘(B) the maximum benefit under the pol6 icy for expenses incurred for any day does not

7 exceed $200,

8 ‘‘(C) such contract does not cover expenses

9 incurred for services or items to the extent that

10 such expenses are reimbursable under title

11 XVIII of the Social Security Act or would be so

12 reimbursable but for the application of a de13 ductible or coinsurance amount,

14 ‘‘(D) such contract is guaranteed renew15 able,

16 ‘‘(E) such contract does not have any cash

17 surrender value, and

18 ‘‘(F) all refunds of premiums, and all pol19 icyholder dividends or similar amounts, under

20 such contract are to be applied as a reduction

21 in future premiums or to increase future bene22 fits.

23 ‘‘(2) SPECIAL RULES.—

24 ‘‘(A) PER DIEM, ETC. PAYMENTS PER25 MITTED.—A contract shall not fail to be treated
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1 as described in paragraph (1)(A) by reason of

2 payments being made on a per diem or other

3 periodic basis without regard to the expenses

4 incurred during the period to which the pay5 ments relate.

6 ‘‘(B) CONTRACT MAY COVER MEDICARE

7 REIMBURSABLE EXPENSES WHERE MEDICARE

8 IS SECONDARY PAYOR.—Paragraph (1)(C) shall

9 not apply to expenses which are reimbursable

10 under title XVIII of the Social Security Act

11 only as a secondary payor.

12 ‘‘(C) REFUNDS OF PREMIUMS.—Paragraph

13 (1)(F) shall not apply to any refund of pre14 miums on surrender or cancellation of the con15 tract.

16 ‘‘(c) QUALIFIED LONG-TERM CARE SERVICES.—For

17 purposes of this section—

18 ‘‘(1) IN GENERAL.—The term ‘qualified long19 term care services’ means necessary diagnostic, pre20 ventive, therapeutic, and rehabilitative services, and

21 maintenance or personal care services, which—

22 ‘‘(A) are required by a chronically ill indi23 vidual in a qualified facility, and
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1 ‘‘(B) are provided pursuant to a plan of

2 care prescribed by a licensed health care practi3 tioner.

4 ‘‘(2) CHRONICALLY ILL INDIVIDUAL.—

5 ‘‘(A) IN GENERAL.—The term ‘chronically

6 ill individual’ means any individual who has

7 been certified by a licensed health care practi8 tioner as—

9 ‘‘(i)(I) being unable to perform (with10 out substantial assistance from another in11 dividual) at least 2 activities of daily living

12 (as defined in subparagraph (B)) for a pe13 riod of at least 90 days due to a loss of

14 functional capacity, or

15 ‘‘(II) having a level of disability simi16 lar (as determined by the Secretary in con17 sultation with the Secretary of Health and

18 Human Services) to the level of disability

19 described in subclause (I), or

20 ‘‘(ii) having a similar level of disabil21 ity due to cognitive impairment.

22 ‘‘(B) ACTIVITIES OF DAILY LIVING.—For

23 purposes of subparagraph (A), each of the fol24 lowing is an activity of daily living:
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1 ‘‘(i) MOBILITY.—The process of walk2 ing or wheeling on a level surface which

3 may include the use of an assistive device

4 such as a cane, walker, wheelchair, or

5 brace.

6 ‘‘(ii) DRESSING.—The overall complex

7 behavior of getting clothes from closets

8 and drawers and then getting dressed.

9 ‘‘(iii) TOILETING.—The act of going

10 to the toilet room for bowel and bladder

11 function, transferring on and off the toilet,

12 cleaning after elimination, and arranging

13 clothes or the ability to voluntarily control

14 bowel and bladder function, or in the event

15 of incontinence, the ability to maintain a

16 reasonable level of personal hygiene.

17 ‘‘(iv) TRANSFER.—The process of get18 ting in and out of bed or in and out of a

19 chair or wheelchair.

20 ‘‘(v) EATING.—The process of getting

21 food from a plate or its equivalent into the

22 mouth.

23 ‘‘(3) QUALIFIED FACILITY.—The term ‘quali24 fied facility’ means—
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1 ‘‘(A) a nursing, rehabilitative, hospice, or

2 adult day care facility (including a hospital, re3 tirement home, nursing home, skilled nursing

4 facility, intermediate care facility, or similar in5 stitution)—

6 ‘‘(i) which is licensed under State law,

7 or

8 ‘‘(ii) which is a certified facility for

9 purposes of title XVIII or XIX of the So10 cial Security Act, or

11 ‘‘(B) an individual’s home if a licensed

12 health care practitioner certifies that without

13 home care the individual would have to be cared

14 for in a facility described in subparagraph (A).

15 ‘‘(4) MAINTENANCE OR PERSONAL CARE SERV16 ICES.—The term ‘maintenance or personal care serv17 ices’ means any care the primary purpose of which

18 is to provide needed assistance with any of the ac19 tivities of daily living described in paragraph (2)(B).

20 ‘‘(5) LICENSED HEALTH CARE PRACTI21 TIONER.—The term ‘licensed health care practi22 tioner’ means any physician (as defined in section

23 1861(r) of the Social Security Act) and any reg24 istered professional nurse, licensed social worker, or
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1 other individual who meets such requirements as

2 may be prescribed by the Secretary.

3 ‘‘(d) CONTINUATION COVERAGE EXCISE TAX NOT

4 TO APPLY.—This section shall not apply in determining

5 whether section 4980B (relating to failure to satisfy con6 tinuation coverage requirements of group health plans) ap7 plies.

8 ‘‘(e) INFLATION ADJUSTMENT OF $200 BENEFIT

9 LIMIT.—

10 ‘‘(1) IN GENERAL.—In the case of a calendar

11 year after 1994, the $200 amount contained in sub12 section (b)(1)(B) shall be increased for such cal13 endar year by the medical care cost adjustment for

14 such calendar year. If any increase determined

15 under the preceding sentence is not a multiple of

16 $10, such increase shall be rounded to the nearest

17 multiple of $10.

18 ‘‘(2) MEDICAL CARE COST ADJUSTMENT.—For

19 purposes of paragraph (1), the medical care cost ad20 justment for any calendar year is the percentage (if

21 any) by which—

22 ‘‘(A) the medical care component of the

23 Consumer Price Index (as defined in section

24 1(f)(5)) for August of the preceding calendar

25 year, exceeds
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1 ‘‘(B) such component for August of 1993.’’

2 (b) CLERICAL AMENDMENT.—The table of sections

3 for such subpart E is amended by inserting after the item

4 relating to section 818 the following new item:

‘‘Sec. 818A. Treatment of long-term care insurance or plans.’’

5 SEC. 102. EXCLUSION FOR BENEFITS PROVIDED UNDER

6 LONG-TERM CARE INSURANCE; INCLUSION

7 OF EMPLOYER-PROVIDED COVERAGE.

8 (a) IN GENERAL.—Subsection (a) of section 104 of

9 the Internal Revenue Code of 1986 (relating to compensa10 tion for injuries or sickness) is amended by striking ‘‘and’’

11 at the end of paragraph (4), by striking the period at the

12 end of paragraph (5) and inserting ‘‘, and’’, and by insert13 ing after paragraph (4) the following new paragraph:

14 ‘‘(6) benefits under a long-term care insurance

15 contract (as defined in section 818A(b)).’’

16 (b) INCLUSION OF EMPLOYER-PROVIDED COV17 ERAGE.—Section 106 of such Code (relating to contribu18 tions by employer to accident and health plans) is amend19 ed by adding at the end thereof the following sentence:

20 ‘‘The preceding sentence shall not apply to any plan pro21 viding coverage for long-term care services.’’

22 SEC. 103. QUALIFIED LONG-TERM SERVICES TREATED AS

23 MEDICAL CARE.

24 (a) GENERAL RULE.—Paragraph (1) of section

25 213(d) of the Internal Revenue Code of 1986 (defining
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1 medical care) is amended by striking ‘‘or’’ at the end of

2 subparagraph (B), by redesignating subparagraph (C) as

3 subparagraph (D), and by inserting after subparagraph

4 (B) the following new subparagraph:

5 ‘‘(C) for qualified long-term care services

6 (as defined in section 818A(c)), or’’.

7 (b) DEDUCTION FOR LONG-TERM CARE EXPENSES

8 FOR PARENT OR GRANDPARENT.—Section 213 of such

9 Code (relating to deduction for medical expenses) is

10 amended by adding at the end the following new sub11 section:

12 ‘‘(g) SPECIAL RULE FOR CERTAIN LONG-TERM CARE

13 EXPENSES.—For purposes of subsection (a), the term ‘de14 pendent’ shall include any parent or grandparent of the

15 taxpayer for whom the taxpayer has expenses for long16 term care services described in section 818A(c), but only

17 to the extent of such expenses.’’

18 (c) TECHNICAL AMENDMENTS.—

19 (1) Subparagraph (D) of section 213(d)(1) of

20 such Code (as redesignated by subsection (a)) is

21 amended by striking ‘‘subparagraphs (A) and (B)’’

22 and inserting ‘‘subparagraphs (A), (B), and (C)’’.

23 (2)(A) Paragraph (1) of section 213(d) of such

24 Code is amended by adding at the end thereof the

25 following new flush sentence:
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1 ‘‘In the case of a long-term care insurance contract

2 (as defined in section 818A), only eligible long-term

3 care premiums (as defined in paragraph (10)) shall

4 be taken into account under subparagraph (D).’’

5 (B) Subsection (d) of section 213 is amended

6 by adding at the end the following new paragraph:

7 ‘‘(10) ELIGIBLE LONG-TERM CARE PRE8 MIUMS.—

9 ‘‘(A) IN GENERAL.—For purposes of this

10 section, the term ‘eligible long-term care pre11 miums’ means the amount paid during a tax12 able year for any long-term care insurance con13 tract (as defined in section 818A) covering an

14 individual, to the extent such amount does not

15 exceed the limitation determined under the fol16 lowing table:

‘‘In the case of an individual

with an attained age before the The limitation

close of the taxable year of: is:

40 or less ................................................................... $200

More than 40 but not more than 50 ......................... 375

More than 50 but not more than 60 ......................... 750

More than 60 but not more than 70 ......................... 1,600

More than 70 ............................................................. 2,000.

17 ‘‘(B) INDEXING.—

18 ‘‘(i) IN GENERAL.—In the case of any

19 taxable year beginning in a calendar year

20 after 1993, each dollar amount contained

21 in paragraph (1) shall be increased by the
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1 medical care cost adjustment of such

2 amount for such calendar year. If any in3 crease determined under the preceding sen4 tence is not a multiple of $10, such in5 crease shall be rounded to the nearest mul6 tiple of $10.

7 ‘‘(ii) MEDICAL CARE COST ADJUST8 MENT.—For purposes of clause (i), the

9 medical care cost adjustment for any cal10 endar year is the percentage (if any) by

11 which—

12 ‘‘(I) the medical care component

13 of the Consumer Price Index (as de14 fined in section 1(f)(5)) for August of

15 the preceding calendar year, exceeds

16 ‘‘(II) such component for August

17 of 1991.’’

18 (3) Paragraph (6) of section 213(d) of such

19 Code is amended—

20 (A) by striking ‘‘subparagraphs (A) and

21 (B)’’ and inserting ‘‘subparagraphs (A), (B),

22 and (C)’’, and

23 (B) by striking ‘‘paragraph (1)(C)’’ in sub24 paragraph (A) and inserting ‘‘paragraph

25 (1)(D)’’.
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1 (4) Paragraph (7) of section 213(d) of such

2 Code is amended by striking ‘‘subparagraphs (A)

3 and (B)’’ and inserting ‘‘subparagraphs (A), (B),

4 and (C)’’.

5 SEC. 104. CERTAIN EXCHANGES OF LIFE INSURANCE CON6 TRACTS FOR LONG-TERM CARE INSURANCE

7 CONTRACTS NOT TAXABLE.

8 Subsection (a) of section 1035 of the Internal Reve9 nue Code of 1986 (relating to certain exchanges of insur10 ance contracts) is amended by striking the period at the

11 end of paragraph (3) and inserting ‘‘; or’’, and by adding

12 at the end thereof the following new paragraph:

13 ‘‘(4) a contract of life insurance or an endow14 ment or annuity contract for a long-term care insur15 ance contract (as defined in section 818A).’’

16 SEC. 105. EXCLUSION FROM GROSS INCOME FOR AMOUNTS

17 WITHDRAWN FROM INDIVIDUAL RETIRE18 MENT PLANS OR 401(k) PLANS FOR LONG19 TERM CARE INSURANCE.

20 (a) IN GENERAL.—Part III of subchapter B of chap21 ter 1 of the Internal Revenue Code of 1986 (relating to

22 items specifically excluded from gross income) is amended

23 by redesignating section 137 as section 138 and by insert24 ing after section 136 the following new section:
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1 ‘‘SEC. 137. DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT

2 ACCOUNTS AND SECTION 401(k) PLANS FOR

3 LONG-TERM CARE INSURANCE.

4 ‘‘(a) GENERAL RULE.—The amount includible in the

5 gross income of an individual for the taxable year by rea6 son of qualified distributions during such taxable year

7 shall not exceed the excess of—

8 ‘‘(1) the amount which would (but for this sec9 tion) be so includible by reason of such distributions,

10 over

11 ‘‘(2) the aggregate premiums paid by such indi12 vidual during such taxable year for any long-term

13 care insurance contract (as defined in section 818A)

14 for the benefit of such individual or the spouse of

15 such individual.

16 ‘‘(b) QUALIFIED DISTRIBUTION.—For purposes of

17 this section, the term ‘qualified distribution’ means any

18 distribution to an individual from an individual retirement

19 account or a section 401(k) plan if such individual has

attained age 591 20 ⁄2 on or before the date of the distribution

21 (and, in the case of a distribution used to pay premiums

22 for the benefit of the spouse of such individual, such

spouse has attained age 591 23 ⁄2 on or before the date of the

24 distribution).

25 ‘‘(c) DEFINITIONS.—For purposes of this section—
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1 ‘‘(1) INDIVIDUAL RETIREMENT ACCOUNT.—The

2 term ‘individual retirement account’ has the mean3 ing given such term by section 408(a).

4 ‘‘(2) SECTION 401(k) PLAN.—The term ‘section

5 401(k) plan’ means any employer plan which meets

6 the requirements of section 401(a) and which in7 cludes a qualified cash or deferred arrangement (as

8 defined in section 401(k)).

9 ‘‘(d) SPECIAL RULES FOR SECTION 401(k) PLANS.—

10 ‘‘(1) WITHDRAWALS CANNOT EXCEED ELEC11 TIVE CONTRIBUTIONS UNDER QUALIFIED CASH OR

12 DEFERRED ARRANGEMENT.—This section shall not

13 apply to any distribution from a section 401(k) plan

14 to the extent the aggregate amount of such distribu15 tions for the use described in subsection (a) exceeds

16 the aggregate employer contributions made pursuant

17 to the employee’s election under section 401(k)(2).

18 ‘‘(2) WITHDRAWALS NOT TO CAUSE DISQUALI19 FICATION.—A plan shall not be treated as failing to

20 satisfy the requirements of section 401, and an ar21 rangement shall not be treated as failing to be a

22 qualified cash or deferred arrangement (as defined

23 in section 401(k)(2)), merely because under the plan

24 or arrangement distributions are permitted which
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1 are excludable from gross income by reason of this

2 section.’’

3 (b) CONFORMING AMENDMENTS.—

4 (1) Section 401(k) of such Code is amended by

5 adding at the end the following new paragraph:

6 ‘‘(11) CROSS REFERENCE.—

‘‘For provision permitting tax-free withdrawals

for payment of long-term care premiums, see section

137.’’

7 (2) Section 408(d) of such Code is amended by

8 adding at the end the following new paragraph:

9 ‘‘(8) CROSS REFERENCE.—

‘‘For provision permitting tax-free withdrawals

from individual retirement accounts for payment of

long-term care premiums, see section 137.’’

10 (3) The table of sections for such part III is

11 amended by striking the last item and inserting the

12 following new items:

‘‘Sec. 137. Distributions from individual retirement accounts and

section 401(k) plans for long-term care insurance.

‘‘Sec. 138. Cross references to other Acts.’’

13 SEC. 106. TAX TREATMENT OF ACCELERATED DEATH BENE14 FITS UNDER LIFE INSURANCE CONTRACTS.

15 Section 101 of the Internal Revenue Code of 1986

16 (relating to certain death benefits) is amended by adding

17 at the end thereof the following new subsection:

18 ‘‘(g) TREATMENT OF CERTAIN ACCELERATED

19 DEATH BENEFITS.—
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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, any amount paid or advanced to an individual

3 under a life insurance contract on the life of an in4 sured—

5 ‘‘(A) who is a terminally ill individual, or

6 ‘‘(B) who is a chronically ill individual (as

7 defined in section 818A(c)(2)) who is confined

8 to a qualified facility (as defined in section

9 818A(c)(3)(A)),

10 shall be treated as an amount paid by reason of the

11 death of such insured.

12 ‘‘(2) TERMINALLY ILL INDIVIDUAL.—For pur13 poses of this subsection, the term ‘terminally ill indi14 vidual’ means an individual who has been certified

15 by a physician as having an illness or physical condi16 tion which can reasonably be expected to result in

17 death in 12 months or less.

18 ‘‘(3) PHYSICIAN.—For purposes of this sub19 section, the term ‘physician’ has the meaning given

20 to such term by section 213(d)(4).’’

21 SEC. 107. EFFECTIVE DATE.

22 The amendments made by this title shall apply to tax23 able years beginning after December 31, 1993.
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1 TITLE II—PROTECTION OF AS2 SETS UNDER MEDICAID

3 THROUGH USE OF QUALIFIED

4 LONG-TERM CARE INSUR5 ANCE

6 SEC. 201. PROTECTION OF ASSETS THROUGH USE OF

7 QUALIFIED LONG-TERM CARE INSURANCE.

8 (a) IN GENERAL.—Title XIX of the Social Security

9 Act is amended by adding at the end the following new

10 section:

11 ‘‘SPECIAL RULES FOR ASSET DISREGARD IN THE CASE OF

12 QUALIFIED LONG-TERM CARE INSURANCE CONTRACTS

13 ‘‘SEC. 1931. (a) IN GENERAL.—Each State plan

14 under this title, as a condition for the receipt of payment

15 under section 1903(a) with respect to long-term care serv16 ices (as defined in subsection (c)(1)), shall provide that

17 in determining the eligibility of an individual for medical

18 assistance under the plan with respect to such services

19 there shall be disregarded some or all of the individual’s

20 assets which are attributable (as determined under sub21 section (c)(2)) to coverage under a qualified long-term

22 care insurance contract (as defined in subsection (b)).

23 ‘‘(b) QUALIFIED LONG-TERM CARE INSURANCE

24 CONTRACT DEFINED.—In this section, the term ‘qualified

25 long-term care insurance contract’ means, with respect to
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1 a State, a long-term care insurance contract (as defined

2 in section 818A(b) of the Internal Revenue Code of 1986)

3 which—

4 ‘‘(1) provides such protection against the costs

5 of receiving long-term care services as the State may

6 require by law;

7 ‘‘(2) provides that benefits under the contract

8 shall be paid without regard to eligibility for medical

9 assistance under this title; and

10 ‘‘(3) meets such other requirements (such as re11 quirements relating to premiums, disclosure, mini12 mum benefits, rights of conversion, and standards

13 for claims processing) as the State may determine to

14 be appropriate.

15 ‘‘(c) OTHER DEFINITIONS.—In this section:

16 ‘‘(1) LONG-TERM CARE SERVICES.—The term

17 ‘long-term care services’ means nursing facility serv18 ices, home health care services, and home and com19 munity-based services, and includes such other simi20 lar items and services described in section 1905(a)

21 as a State may specify.

22 ‘‘(2) ATTRIBUTION RULES.—An individual’s as23 sets are considered to be ‘attributable’ to a qualified

24 long-term care insurance contract to the extent spec-
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1 ified under the State plan. Such a plan shall provide

2 for at least one of the following:

3 ‘‘(A) All assets are considered attributable

4 if the insurance contract provides coverage for

5 at least a specified period of coverage (of not

6 less than 3 years and of not more than 6 years)

7 for long-term care services.

8 ‘‘(B) An amount of assets, up to the dollar

9 limitation on benefits for long-term care serv10 ices under the contract, is considered attrib11 utable to the contract.’’.

12 (b) CONFORMING AMENDMENT.—Section

13 1902(a)(17)(A) of such Act (42 U.S.C. 1396a(a)(17)(A))

14 is amended by inserting ‘‘and section 1931’’ after ‘‘objec15 tives of this title’’.

16 (c) EFFECTIVE DATE.—

17 (1) IN GENERAL.—The amendments made by

18 this section shall apply (except as provided under

19 paragraph (2)) to payments to States under title

20 XIX of the Social Security Act for calendar quarters

21 beginning on or after one year after the date of the

22 enactment of this Act, without regard to whether

23 regulations to implement such amendment are pro24 mulgated by such date.
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1 (2) DELAY PERMITTED IF STATE LEGISLATION

2 REQUIRED.—In the case of a State plan for medical

3 assistance under title XIX of the Social Security Act

4 which the Secretary of Health and Human Services

5 determines requires State legislation (other than leg6 islation authorizing or appropriating funds) in order

7 for the plan to meet the additional requirements im8 posed by the amendments made by this section, the

9 State plan shall not be regarded as failing to comply

10 with the requirements of such title solely on the

11 basis of its failure to meet these additional require12 ments before the first day of the first calendar quar13 ter beginning after the close of the first regular ses14 sion of the State legislature that begins after the

15 date of the enactment of this Act. For purposes of

16 the previous sentence, in the case of a State that has

17 a 2-year legislative session, each year of such session

18 shall be deemed to be a separate regular session of

19 the State legislature.

20 TITLE III—STUDIES

21 SEC. 301. FEASIBILITY OF ENCOURAGING HEALTH CARE

22 PROVIDERS TO DONATE SERVICES TO HOME23 BOUND PATIENTS.

24 The Comptroller General of the United States shall

25 conduct a study on the feasibility of encouraging health
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1 care providers to donate their services to homebound pa2 tients. Such study shall include an examination of the ef3 fects of qualifying such services as a charitable contribu4 tion.

5 SEC. 302. FEASIBILITY OF TAX CREDIT FOR HEADS OF

6 HOUSEHOLDS WHO CARE FOR ELDERLY FAM7 ILY MEMBERS IN THEIR HOMES.

8 The Comptroller General of the United States shall

9 conduct a study on the feasibility of providing heads of

10 households who care for elderly family members in their

11 homes with a tax credit. Such study shall estimate the

12 cost of such a tax credit which would apply to expenses

13 incurred in the custodial care of such an elderly family

14 member to the extent such expenses exceed 5 percent of

15 adjusted gross income.

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