I
106TH CONGRESS
2D SESSION
H. R. 4040
To amend title 5, United States Code, to provide for the establishment
of a program under which long-term care insurance is made available
to Federal employees, members of the uniformed services, and civilian
and military retirees, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 21, 2000
Mr. SCARBOROUGH (for himself, Mr. CUMMINGS, Mr. MICA, Ms. NORTON, Mr.
MILLER of Florida, and Mr. ALLEN) introduced the following bill; which
was referred to the Committee on Government Reform, and in addition
to the Committee on Armed Services, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend title 5, United States Code, to provide for the
establishment of a program under which long-term care
insurance is made available to Federal employees, mem-
bers of the uniformed services, and civilian and military
retirees, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Long-Term Care Secu-
rity Act’’.
SEC. 2. LONG-TERM CARE INSURANCE.
(a) IN GENERAL.—Subpart G of part III of title 5,
United States Code, is amended by adding at the end the
following:
‘‘CHAPTER 90—LONG-TERM CARE
INSURANCE
‘‘Sec.
‘‘9001. Definitions.
‘‘9002. Availability of insurance.
‘‘9003. Contracting authority.
‘‘9004. Financing.
‘‘9005. Preemption.
‘‘9006. Studies, reports, and audits.
‘‘9007. Jurisdiction of courts.
‘‘9008. Administrative functions.
‘‘9009. Cost accounting standards.
‘‘§ 9001. Definitions
For purposes of this chapter:
‘‘(1) 
EMPLOYEE.—The 
term 
‘employee’
means—
‘‘(A) an employee as defined by section
8901(1); and
‘‘(B) an individual described in section
2105(e);
but does not include an individual employed by the
government of the District of Columbia.
‘‘(2) ANNUITANT.—The term ‘annuitant’ has
the meaning such term would have under paragraph
(3) of section 8901 if, for purposes of such para-
graph, the term ‘employee’ were considered to have
the meaning given to it under paragraph (1) of this
subsection.
‘‘(3) MEMBER
OF
THE
UNIFORMED
SERV-
ICES.—The term ‘member of the uniformed services’
means a member of the uniformed services (as de-
fined by section 2101(3)).
‘‘(4) RETIRED
MEMBER
OF
THE
UNIFORMED
SERVICES.—The term ‘retired member of the uni-
formed services’ means a member of the uniformed
services entitled to retired or retainer pay (other
than under chapter 1223 of title 10).
‘‘(5) QUALIFIED RELATIVE.—The term ‘quali-
fied relative’ means each of the following:
‘‘(A) The spouse of an individual described
in paragraph (1), (2), (3), or (4).
‘‘(B) The parent, stepparent, or parent-in-
law of an individual described in paragraph (1)
or (3).
‘‘(C) A child (including an adopted child, a
stepchild, or, to the extent the Office of Per-
sonnel Management by regulation provides, a
foster child) of an individual described in para-
graph (1), (2), (3), or (4), if such child is at
least 18 years of age.
‘‘(6) ELIGIBLE INDIVIDUAL.—The term ‘eligible
individual’ refers to an individual described in para-
graph (1), (2), (3), (4), or (5).
‘‘(7) QUALIFIED CARRIER.—The term ‘qualified
carrier’ means an insurance company (or consortium
of insurance companies) that is licensed to issue
long-term care insurance in all States, taking any
subsidiaries of such a company into account (and, in
the case of a consortium, considering the member
companies and any subsidiaries thereof, collectively).
‘‘(8) STATE.—The term ‘State’ includes the
District of Columbia.
‘‘(9) QUALIFIED LONG-TERM CARE INSURANCE
CONTRACT.—The term ‘qualified long-term care in-
surance contract’ has the meaning given such term
by section 7702B of the Internal Revenue Code of
1986.
‘‘(10) APPROPRIATE
SECRETARY.—The term
‘appropriate Secretary’ means—
‘‘(A) except as otherwise provided in this
paragraph, the Secretary of Defense;
‘‘(B) with respect to the Coast Guard when
it is not operating as a service of the Navy, the
Secretary of Transportation;
‘‘(C) with respect to the commissioned
corps of the National Oceanic and Atmospheric
Administration, the Secretary of Commerce;
and
‘‘(D) with respect to the commissioned
corps of the Public Health Service, the Sec-
retary of Health and Human Services.
‘‘§ 9002. Availability of insurance
‘‘(a) IN GENERAL.—The Office of Personnel Manage-
ment shall establish and, in consultation with the appro-
priate Secretaries, administer a program through which
any individual described in paragraph (1), (2), (3), (4),
or (5) of section 9001 may obtain long-term care insur-
ance coverage under this chapter for such individual.
‘‘(b) GENERAL REQUIREMENTS.—Long-term care in-
surance may not be offered under this chapter unless—
‘‘(1) the only coverage provided is under quali-
fied long-term care insurance contracts; and
‘‘(2) each insurance contract under which any
such coverage is provided is issued by a qualified
carrier.
‘‘(c) DOCUMENTATION REQUIREMENT.—As a condi-
tion for obtaining long-term care insurance coverage under
this chapter based on one’s status as a qualified relative,
an applicant shall provide documentation to demonstrate
the relationship, as prescribed by the Office.
‘‘(d) UNDERWRITING STANDARDS.—
‘‘(1) DISQUALIFYING CONDITION.—Nothing in
this chapter shall be considered to require that long-
term care insurance coverage be made available in
the case of any individual who would be eligible for
benefits immediately.
‘‘(2) SPOUSAL PARITY.—For the purpose of un-
derwriting standards, a spouse of an individual de-
scribed in paragraph (1), (2), (3), or (4) of section
9001 shall, as nearly as practicable, be treated like
that individual.
‘‘(3) GUARANTEED
ISSUE.—Nothing in this
chapter shall be considered to require that long-term
care insurance coverage be guaranteed to an eligible
individual.
‘‘(4) REQUIREMENT THAT CONTRACT BE FULLY
INSURED.—In addition to the requirements other-
wise applicable under section 9001(9), in order to be
considered a qualified long-term care insurance con-
tract for purposes of this chapter, a contract must
be fully insured, whether through reinsurance with
other companies or otherwise.
‘‘(5) HIGHER STANDARDS ALLOWABLE.—Noth-
ing in this chapter shall, in the case of an individual
applying for long-term care insurance coverage
under this chapter after the expiration of such indi-
vidual’s first opportunity to enroll, preclude the ap-
plication of underwriting standards more stringent
than those that would have applied if that oppor-
tunity had not yet expired.
‘‘(e) GUARANTEED RENEWABILITY.—The benefits
and coverage made available to eligible individuals under
any insurance contract under this chapter shall be guaran-
teed renewable (as defined by section 7A(2) of the model
regulations described in section 7702B(g)(2) of the Inter-
nal Revenue Code of 1986), including the right to have
insurance remain in effect so long as premiums continue
to be timely made. However, the authority to revise pre-
miums under this chapter shall be available only on a class
basis and only to the extent otherwise allowable under sec-
tion 9003(b).
‘‘§ 9003. Contracting authority
‘‘(a) IN GENERAL.—The Office of Personnel Manage-
ment shall, without regard to section 5 of title 41 or any
other statute requiring competitive bidding, contract with
1 or more qualified carriers for a policy or policies of long-
term care insurance. The Office shall ensure that each re-