I
103D CONGRESS
1ST SESSION
H. R. 862
To require the Secretary of Health and Human Services to submit to the
Congress a proposal for the regulation of long-term care insurance poli-
cies, including an analysis and evaluation of such policies as are available
to individuals, and to amend the Internal Revenue Code of 1986 to
allow tax-free distributions from individual retirement accounts for the
purchase of long-term care insurance coverage by individuals who have
attained age 591⁄2.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 4, 1993
Mr. ROWLAND introduced the following bill; which was referred jointly to the
Committees on Ways and Means and Energy and Commerce
A BILL
To require the Secretary of Health and Human Services
to submit to the Congress a proposal for the regulation
of long-term care insurance policies, including an analysis
and evaluation of such policies as are available to individ-
uals, and to amend the Internal Revenue Code of 1986
to allow tax-free distributions from individual retirement
accounts for the purchase of long-term care insurance
coverage by individuals who have attained age 591⁄2.
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 In-
surance for the Elderly Act of 1993’’.
SEC. 2. TAX-FREE DISTRIBUTIONS FROM INDIVIDUAL RE-
TIREMENT ACCOUNTS FOR THE PURCHASE
OF LONG-TERM CARE INSURANCE COVERAGE
BY INDIVIDUALS WHO HAVE ATTAINED AGE
591⁄2.
Subsection (d) of section 408 of the Internal Revenue
Code of 1986 (relating to tax treatment of distributions
from individual retirement accounts) is amended by add-
ing at the end the following new paragraph:
‘‘(8) DISTRIBUTIONS TO PURCHASE LONG-TERM
CARE INSURANCE.—
‘‘(A) IN
GENERAL.—Paragraph (1) shall
not apply to the applicable percentage of any
amount paid or distributed out of an individual
retirement account or individual retirement an-
nuity to the individual for whose benefit the ac-
count or annuity is maintained if—
‘‘(i) the individual has attained age
591⁄2 by the date of the payment or dis-
tribution, and
‘‘(ii) the entire amount received (in-
cluding money and any other property) is
used within 90 days to purchase long-term
care insurance for the benefit of the indi-
vidual or the spouse of the individual (if
the spouse has attained age 591⁄2 by the
date of the payment or distribution).
‘‘(B) 
APPLICABLE
PERCENTAGE.—For
purposes of subparagraph (A), the term ‘appli-
cable percentage’ means in the case of a tax-
payer whose adjusted gross income for the tax-
able year is—
‘‘(i) not greater than the minimum
amount, 100 percent,
‘‘(ii) 
greater 
than 
the 
minimum
amount but not greater than the maximum
amount, a percentage equal to—
‘‘(I) the difference between the
maximum amount and such adjusted
gross income, divided by
‘‘(II) the difference between the
maximum amount and the minimum
amount, or
‘‘(iii) greater than the maximum
amount, zero percent.
‘‘(C) DEFINITIONS.—For purposes of sub-
paragraph (A)—
‘‘(i) LONG-TERM CARE INSURANCE.—
The term ‘long-term care insurance’ means
an insurance policy which at a minimum,
provides reimbursement for expenses in-
curred by, and services provided to, the
beneficiary for catastrophic and long-term
care at a nursing facility within the mean-
ing of section 1919(a) of the Social Secu-
rity Act (42 U.S.C. 1396r(a)) and at the
home of the beneficiary in the case of serv-
ices of a homemaker/home health aide, per-
sonal care services, and nursing care pro-
vided by a licensed professional nurse.
‘‘(ii) MINIMUM
AMOUNT.—The term
‘minimum amount’ means, with respect to
any taxable year, $45,000 increased by an
amount which is equal to $45,000 multi-
plied by the cost-of-living adjustment (as
defined in section 1(f)(3)) for the calendar
year in which the taxable year begins.
‘‘(iii) MAXIMUM AMOUNT.—The term
‘maximum amount’ means, with respect to
any taxable year, $100,000 increased by
an amount which is equal to $100,000
multiplied by the cost-of-living adjustment
(1) shall propose a regulatory program which
provides for the application of minimum standards
and requirements with respect to long-term care in-
surance policies, and
(2) should analyze and evaluate—
(A) the various catastrophic and long-term
care insurance policies available to individuals,
and
(B) any other areas of examination deter-
mined to be appropriate by the Secretary of
Health and Human Services.
SEC. 4. EFFECTIVE DATE.
The amendment made by section 2 shall apply to
amounts paid or distributed after the 1st day of the 1st
calendar year which begins after the date of the enactment
of this Act.
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