[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1473 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1473
To develop a model disclosure form to assist consumers in purchasing
long-term care insurance.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 1, 2013
Ms. Klobuchar introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To develop a model disclosure form to assist consumers in purchasing
long-term care insurance.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Long-Term Care Insurance Consumer
Right-to-Know Act of 2013''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Long-term care insurance policy.--The term ``long-term
care insurance policy'' means--
(A) a qualified long-term care insurance contract
(as defined in section 7702B(b) of the Internal Revenue
Code of 1986); and
(B) a qualified long-term care insurance contract
that covers an insured who is a resident of a State
with a qualified State long-term care insurance
partnership under clause (iii) of section 1917(b)(1)(C)
of the Social Security Act (42 U.S.C. 1396p(b)(1)(C))
or a long-term care insurance policy offered in
connection with a State plan amendment described in
clause (iv) of such section.
(2) Model act and regulation.--The term ``model Act and
regulation'' means the long-term care insurance model
regulation, and the long-term care insurance model Act,
respectively, promulgated by the National Association of
Insurance Commissioners (as adopted as of October 2000 and as
of December 2006).
(3) NAIC.--The term ``NAIC'' means the National Association
of Insurance Commissioners.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(5) State.--The term ``State'' means each of the 50 States,
the District of Columbia, the Commonwealth of Puerto Rico, the
United States Virgin Islands, Guam, the Commonwealth of the
Northern Mariana Islands, and American Samoa.
SEC. 3. NAIC STUDY AND REPORT ON STATE DISCLOSURE REQUIREMENTS FOR
LONG-TERM CARE INSURANCE.
(a) In General.--The Secretary shall request the NAIC to carry out
the activities described in subsection (b) and issue the report
described in subsection (c).
(b) Review and Development of Proposed Model Disclosure
Requirements.--The activities described in this subsection are the
following:
(1) Model act and regulation disclosure requirements.--
Review and describe disclosure requirements for long-term care
insurance policies under the Model Act and regulation.
(2) State law disclosure requirements.--Review and describe
disclosure requirements for long-term care insurance policies
under State laws.
(3) Long-term care services.--Review and describe
differences in long-term care services, including with respect
to providers of such services and the settings in which such
services are provided among States and develop a standardized
definition for long-term care services.
(4) Identification of key issues for development of model
disclosure marketing form.--Identify and describe key issues to
consider in the development of a proposed model form for
marketing long-term care insurance policies.
(c) Report.--The report described in this subsection is a NAIC
White Paper that is issued not later than 1 year after the date of
enactment of this Act and contains the results of the reviews conducted
under subsection (a) and the descriptions required under that
subsection.
SEC. 4. NAIC WORKING GROUP TO DEVELOP MODEL DISCLOSURE FORM FOR LONG-
TERM CARE INSURANCE.
(a) In General.--The Secretary shall request the NAIC to establish,
not later than 60 days after the date on which the NAIC White Paper
described in section 3(c) is issued and in consultation with the
Secretary and the Secretary of the Treasury, a Working Group to develop
a model disclosure form for marketing long-term care insurance
policies.
(b) Working Group Members.--The Working Group established under
subsection (a) shall be composed of the following:
(1) Representatives from State Departments of Health (or
the most appropriate State agencies with responsibility for
oversight of the provision of long-term care).
(2) Representatives of long-term care providers and
facilities.
(3) Consumer advocates.
(4) Representatives of issuers of long-term care insurance
policies.
(5) Representatives of the NAIC or State insurance
commissioners.
(6) Other experts in long-term care and long-term care
insurance policies selected by the Secretary and Secretary of
the Treasury or the NAIC.
(c) Requirements for Development of Form.--
(1) Considerations.--In developing the model form, the
Working Group shall consider the following:
(A) Variations among providers, services, and
facilities in the long-term care and long-term care
insurance markets.
(B) The results of the reviews and the descriptions
included in the NAIC White Paper issued under section
3(c).
(C) Such other information and factors as the
Working Group determines appropriate.
(2) Standardizations.--The Working Group shall ensure that
the model has--
(A) minimum standard definitions for coverage of
the various types of services and benefits provided
under long-term care insurance policies;
(B) minimum standard language for use by issuers of
such policies, and for agents selling such policies, in
explaining the services and benefits covered under the
policies and restrictions on the services and benefits;
(C) minimum standard format, color, and type size
for disclosure documents; and
(D) such other minimum standards as the Working
Group determines appropriate.
(d) Deadline for Development.--The Working Group shall issue a
proposed model disclosure form for marketing long-term care insurance
policies not later than 1 year after the date on which the Working
Group is established.
(e) Adoption and Incorporation Into Model Act and Regulation.--The
Secretary shall request the NAIC to amend the Model Act and regulation
to require the use of the proposed model disclosure form issued by the
Working Group, not later than 1 year after the date on which the
Working Group issues the form.
SEC. 5. REQUIRED USE OF MODEL DISCLOSURE FORM IN MARKETING LONG-TERM
CARE INSURANCE POLICIES.
(a) Application to Tax-Qualified and Medicaid Partnership
Policies.--Not later than 1 year after the date on which the Working
Group issues the proposed model disclosure form for marketing long-term
care insurance policies under section 4:
(1) Tax-qualified policies.--The Secretary of the Treasury
shall promulgate a regulation requiring, not later than 1 year
after the date on which the regulation is final, any issuer of
a qualified long-term care insurance contract (as defined in
section 7702B(b) of the Internal Revenue Code of 1986) to use
the proposed model disclosure form for marketing such
contracts.
(2) Medicaid partnership policies.--The Secretary shall
promulgate a regulation requiring, not later than 1 year after
the date on which the regulation is final, any issuer of a
qualified long-term care insurance contract that covers an
insured who is a resident of a State with a qualified State
long-term care insurance partnership under clause (iii) of
section 1917(b)(1)(C) of the Social Security Act (42 U.S.C.
1396p(b)(1)(C)) or a long-term care insurance policy offered in
connection with a State plan amendment described in clause (iv)
of such section to use the proposed model disclosure form for
marketing such contracts.
(b) Application to All Other Long-Term Care Insurance Policies.--
Not later than 18 months, or the earliest date on which an amendment
could be enacted for those States with legislatures which meet only
every other year, after the date on which the NAIC adopts an amended
Model Act and regulation to require the use of the proposed model
disclosure form issued by the Working Group under section 4, each State
shall require by statute or regulation any issuer of a long-term care
insurance policy to use the proposed model disclosure form when
marketing such a policy in the State.
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