I
107TH CONGRESS
1ST SESSION
H. R. 831
To amend the Internal Revenue Code of 1986 to allow individuals a deduction
for qualified long-term care insurance premiums, use of such insurance
under cafeteria plans and flexible spending arrangements, and a credit
for individuals with long-term care needs.
IN THE HOUSE OF REPRESENTATIVES
MARCH 1, 2001
Mrs. JOHNSON of Connecticut (for herself, Mrs. THURMAN, Mr. MCCRERY,
and Mr. POMEROY) introduced the following bill; which was referred to
the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow indi-
viduals a deduction for qualified long-term care insurance
premiums, use of such insurance under cafeteria plans
and flexible spending arrangements, and a credit for
individuals with long-term care needs.
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 and
Retirement Security Act of 2001’’.
SEC. 2. TREATMENT OF PREMIUMS ON QUALIFIED LONG-
TERM CARE INSURANCE CONTRACTS.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
additional itemized deductions) is amended by redesig-
nating section 222 as section 223 and by inserting after
section 221 the following new section:
‘‘SEC. 222. PREMIUMS ON QUALIFIED LONG-TERM CARE IN-
SURANCE CONTRACTS.
‘‘(a) IN GENERAL.—In the case of an individual,
there shall be allowed as a deduction an amount equal to
the applicable percentage of the amount of eligible long-
term care premiums (as defined in section 213(d)(10))
paid during the taxable year for coverage for the taxpayer,
his spouse, and dependents under a qualified long-term
care insurance contract (as defined in section 7702B(b)).
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of
subsection (a)—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the applicable percentage
shall be determined in accordance with the following
table based on the number of years of continuous
coverage (as of the close of the taxable year) of the
individual under any qualified long-term care insur-
ance contracts (as defined in section 7702B(b)):
‘‘If the number of years of
The applicable long-term
continuous coverage is—
care percentage is—
Less than 1 ..................................................................
At least 1 but less than 2 .............................................
At least 2 but less than 3 .............................................
At least 3 but less than 4 .............................................
At least 4 ......................................................................
100.
‘‘(2) SPECIAL
RULES
FOR
INDIVIDUALS
WHO
HAVE ATTAINED AGE 55.—In the case of an indi-
vidual who has attained age 55 as of the close of the
taxable year, the following table shall be substituted
for the table in paragraph (1).
‘‘If the number of years of
The applicable long-term
continuous coverage is—
care percentage is—
Less than 1 ..................................................................
At least 1 but less than 2 .............................................
At least 2 ......................................................................
100.
‘‘(3) ONLY COVERAGE AFTER 2000 TAKEN INTO
ACCOUNT.—Only coverage for periods after Decem-
ber 31, 2000, shall be taken into account under this
subsection.
‘‘(4) CONTINUOUS
COVERAGE.—An individual
shall not fail to be treated as having continuous cov-
erage if the aggregate breaks in coverage during any
1-year period are less than 60 days.
‘‘(c) COORDINATION WITH OTHER DEDUCTIONS.—
Any amount paid by a taxpayer for any qualified long-
term care insurance contract to which subsection (a) ap-
plies shall not be taken into account in computing the
amount allowable to the taxpayer as a deduction under
section 162(l) or 213(a).’’.