Private Long-Term Care Family Protection Act of 1995

TABLE OF CONTENTS:

Title I: Tax Treatment of Long-Term Care Insurance

Title II: Standards for Long-Term Care Insurance

Title III: Incentives to Encourage the Purchase of Private

Insurance

Title IV: Effective Date

Private Long-Term Care Family Protection Act of 1995 - Title I: Tax Treatment of Long-Term Care Insurance - Amends the Internal Revenue Code to include amounts paid for qualified long-term care services and long-term care insurance (as defined in this Act) as medical expenses deductible from gross income.

(Sec. 102) Provides for the treatment of qualified long-term care insurance or plans as accident and health insurance or plans. Excludes from gross income a specified amount of benefits provided under a qualified long-term care insurance contract and provides an inflation adjustment. Provides rules for coverage provided by a rider on a life insurance contract.

(Sec. 103) Makes continuation coverage requirements inapplicable to qualified plans. Permits long-term care insurance coverage under cafeteria plans.

(Sec. 104) Requires insurance companies, in the case of long-term care insurance policies, to use a one-year full preliminary term reserve method when computing income.

(Sec. 105) Excludes from gross income as a death benefit any amount distributed to an individual under a life insurance contract of an insured who is terminally ill.

(Sec. 106) Allows insurance companies to issue accelerated death benefit riders on life insurance contracts.

Title II: Standards for Long-Term Care Insurance - Requires the Congress to appoint a National Long-Term Care Insurance Advisory Council.

(Sec. 202) Imposes an excise tax on the issuer of any qualified long-term care insurance policy for failure to meet specified model regulation and disclosure requirements.

(Sec. 204) Requires the Advisory Council to promulgate standards for the use of uniform language and definitions in long-term care insurance policies. Allows variations to account for differences among States in licensing practices.

Title III: Incentives to Encourage the Purchase of Private Insurance - Directs the Secretary of Health and Human Services to establish a program of public education regarding catastrophic long-term care costs and the benefits of long-term care insurance coverage.

(Sec. 302) Amends title XIX (Medicaid) of the Social Security Act to provide for the disregard, in the case of recipients of long-term care insurance benefits, of certain assets and resources for purposes of the Medicaid estate recovery provisions.

(Sec. 303) Excludes from gross income distributions from an individual retirement account of an individual over age 59 and one-half if such if such distributions are used to purchase long-term care insurance for the individual or his or her spouse. Allows for distributions from qualified retirement plans without the imposition of a penalty if such distributions are for the purchase of long-term care insurance.

Title IV: Effective Date - Sets forth the effective date of the tax provisions of this Act.