I 
108TH CONGRESS 
1ST SESSION H. R. 2096
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 
MAY 14, 2003
Mrs. JOHNSON of Connecticut (for herself, Mr. POMEROY, Mr. BILIRAKIS, Mr. 
SERRANO, Mr. MCINTYRE, Mr. CASE, Mr. DAVIS of Florida, Mr. FARR, 
Mr. SANDERS, Mr. GILCHREST, and Mr. FROST) 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 2003’’.
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 223 as section 224 and by inserting after 
section 222 the following new section: 
‘‘SEC. 223. 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), the applicable percentage shall be deter-
mined in accordance with the following table:
‘‘For taxable years 
The applicable 
beginning in calendar year—
percentage is—
2003, 2004, or 2005 ....................................................
2006 .............................................................................
2007 .............................................................................
2008 or thereafter ........................................................
100.
‘‘(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).’’. 
(b) LONG-TERM CARE INSURANCE PERMITTED TO 
BE OFFERED UNDER CAFETERIA PLANS AND FLEXIBLE 
SPENDING ARRANGEMENTS.—
(1) CAFETERIA PLANS.—Section 125(f) of the 
Internal Revenue Code of 1986 (defining qualified 
benefits) is amended by inserting before the period 
at the end ‘‘; except that such term shall include the 
payment of premiums for any qualified long-term 
care insurance contract (as defined in section 
7702B) to the extent the amount of such payment 
does not exceed the eligible long-term care premiums 
(as defined in section 213(d)(10)) for such con-
tract’’. 
(2) FLEXIBLE
SPENDING
ARRANGEMENTS.—
Section 106 of such Code (relating to contributions 
by an employer to accident and health plans) is 
amended by striking subsection (c). 
(c) CONFORMING AMENDMENTS.—
(1) Section 62(a) of the Internal Revenue Code 
of 1986 is amended by inserting after paragraph 
(18) the following new item:
‘‘(19) PREMIUMS
ON
QUALIFIED
LONG-TERM 
CARE
INSURANCE
CONTRACTS.—The deduction al-
lowed by section 223.’’. 
(2) The table of sections for part VII of sub-
chapter B of chapter 1 of such Code is amended by 
striking the last item and inserting the following 
new items:
‘‘Sec. 223. Premiums on qualified long-term care insurance con-
tracts. 
‘‘Sec. 224. Cross reference.’’.
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2002. 
(2) CAFETERIA PLANS AND FLEXIBLE SPEND-
ING
ARRANGEMENTS.—The amendments made by 
subsection (b) shall apply to taxable years beginning 
after December 31, 2004. 
SEC. 3. CREDIT FOR TAXPAYERS WITH LONG-TERM CARE 
NEEDS. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25B the following new 
section: