A bill to amend the Internal Revenue Code of 1986 to encourage the coverage of individuals by private long-term health care insurance.

Amends the Internal Revenue Code to require that, for the purpose of determining the income tax liability of life insurance companies, qualified long-term care insurance be treated as accident or health insurance. Applies this provision to policies covering at least 12 consecutive months of necessary diagnostic, preventive, therapeutic, rehabilitative, or personal care services that are provided in a setting other than an acute care unit of a hospital.

Describes the tax reserve method to be used to compute reserves in connection with qualified long-term health care insurance contracts.

Treats qualified long-term care insurance as accident or health insurance and its benefits as benefits for personal injuries or sickness for purposes of determining appropriate tax exclusions for employer contributions or employee benefits.

Allows an income tax deduction of long-term health care expenditures.

States that benefits provided under certain employer-funded long-term health care insurance shall not be treated as deferred compensation plans for purposes of the tax deduction available for employer contributions to benefit plans.