Long-Term Health Care Amendments of 1987

Long-Term Health Care Amendments of 1987 - Title I: Medicare Long-term Care Benefits - Amends title XVIII (Medicare) of the Social Security Act to add a new part C entitled "Long-Term Care Benefit Program." (Redesignates the current part C as part D.) Provides coverage for the home health services and nursing care required by individuals who are eligible for part A (Hospital Insurance) benefits. Sets forth the formula for determining the long-term care deductible for a calendar year.

Conditions payment of long-term care providers on: (1) such providers making written requests for payment within three years of furnishing service; and (2) a physician's certification that the beneficiary needs or needed nursing facility care or home health services, and that home health services are or were furnished while the individual is or was under a physician's care. Prohibits physician's who have a significant ownership interest in, or a significant financial or contractual relationship with, a home health agency from performing such a certification of the agency, unless it is a sole community home health agency. Pays providers the lesser of the reasonable cost or the customary charges for part C services. Prohibits part C payments: (1) to Federal providers; and (2) for services for which an individual is entitled to be paid under part A of the Medicare program.

Amends the Internal Revenue Code to increase hospital insurance tax rates and reduce old age, survivors and disability insurance tax rates for taxable years beginning with 1988.

Includes nursing care furnished under the supervision of a registered or licensed professional nurse as well as care provided in a skilled nursing or intermediate care facility within the scope of nursing facility care.

Requires the Board of Directors of the Federal Hospital Insurance Trust Fund to provide for a separate accounting of the additional taxes deposited into such fund by reason of this Act and the disbursements from such fund for part C benefits. Makes Medicare the primary payor where part C benefits are also covered under employment-related group health plans.

Title II: Incentives for Individuals to Purchase Long-Term Care Insurance - Amends the Internal Revenue Code to allow individuals to deduct certain qualified long-term care insurance premiums they have paid on behalf of eligible beneficiaries. Defines a "qualified long-term care insurance policy" as a policy certified by the Secretary of Health and Human Services and providing coverage for diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal care services provided in a setting other than a hospital acute care unit.

Title III: Incentives for Employers to Provide Group Long-Term Care - Amends the Internal Revenue Code to provide that a trust forming part of a pension plan shall not be treated as a nonqualified trust merely because such plan covers qualified long-term health care of employees or retired employees.