Long-Term Care Insurance Incentive Act of 1993

TABLE OF CONTENTS:

Title I: Tax Treatment of Long-Term Care Insurance

Title II: Refundable Tax Credit for Certain Custodial Care

Title III: Protection of Assets Under Medicaid Through Use

of Qualified Long-Term Care Insurance

Long-Term Care Insurance Incentive Act of 1993 - Title I: Tax Treatment of Long-Term Care Insurance - Amends the Internal Revenue Code to provide for the treatment of qualified long-term care insurance as accident and health insurance for purposes of insurance company taxation.

Excludes from gross income benefits provided under a long-term care insurance contract. Includes in gross income employer-provided coverage for long-term care services.

Allows a tax credit for a percentage of qualified long-term care premiums.

Includes amounts paid for qualified long-term care services as medical expenses for individual itemized deductions. Includes any parent or grandparent as a dependent for purposes of such expenses.

Provides for the nonrecognition of gain or loss on the exchange of any life insurance contract or an endowment or annuity contract for a long-term care insurance contract.

Excludes from gross income certain amounts withdrawn from individual retirement accounts and certain employer cash or deferred arrangements to pay long-term care premiums.

Provides for the exclusion as a death benefit of any amount paid or advanced to an individual under a life insurance contract because such individual is terminally ill, chronically ill, or has been permanently confined to a qualified facility.

Allows insurance companies to issue accelerated death benefit riders on life insurance contracts.

Title II: Refundable Tax Credit for Certain Custodial Care - Allows a $2,000 per qualified person tax credit for taxpayers who maintain a household which includes a chronically ill dependent.

Title III: Protection of Assets Under Medicaid Through Use of Qualified Long-Term Care Insurance - Amends title XIX of the Social Security Act (Medicaid) to disregard assets which are attributable to coverage under a qualified long-term care insurance contract for purposes of eligibility.