Matches the tax treatment of reserves under IRC 807 with the NAIC minimum reserving requirements, but delays the effective date until 1998.

For tax purposes, treats LTC insurance like accident and health insurance.

Treats LTC services and premiums as medical expenses (except if paid to a relative), with additional limits on the premium deduction based on age. Allows self-employed individuals a partial deduction for LTC premiums.

Allows employees to exclude from income the value of employer contributions under IRS sec. 106, but does not allow inclusion of LTC insurance in a cafeteria plan.

Appears to allow employer deduction of LTC contributions.

Specifies that per diem policies qualify but are subject to a $175 (indexed) daily benefit cap, integrated with other LTC policies . The benefit cap does not apply to reimbursement-type products. Aggregates per diem contracts and per diem LTC riders; any excess of aggregate per diem payments is taxed unless actual costs for LTC services in excess of the limit are incurred.

Adds an integration rule for per diem policies only. The $175 daily limit for per diem policies is reduced by the amount of any reimbursement for non-per diem LTC contracts. Adds a special rule that per diem policies issued on or before 7/31/96 are not required to meet the integration rules.

Adds a requirement that the policy must include at least 5 of 5 activities of daily living (ADLs) listed. The benefit trigger is being unable to perform at least 2 ADLs (out of either 5 or 6 ADLs). Severe cognitive impairment (for example, Alzheimer patients) is a separate trigger.

Requires coordination with Medicare. (The Medicare duplication language was include in Title II.)

Allows LTC riders for chronically ill; includes LTC riders in the accelerated death benefit provisions.

Allows tax-favored treatment for existing policies which complied with state standards at the time of issuance for policies issued before 1-1-97. Allows tax-free exchanges of existing LTC contracts for new qualified LTC contracts until 1998.

Includes selected consumer protection provisions of the January 1993 NAIC Model Act and Regulations; includes mandatory offer of nonforfeiture.

Allows states to adopt more stringent consumer protection standards.

Provides that the Secretary of the Treasury determines if the requirements of the NAIC Model Act and Regulation have been met.

Established a new excise tax for failure to meet certain consumer protections, but applies it to the issuance of qualified LTC contracts rather than to all LTC contracts.

Creates reporting requirements for all LTC benefits, including total payments, taxpayer identification and type of contract.

Includes accelerated death benefit provisions for amounts received under life insurance contracts by individuals who are terminally ill or chronically ill.

Does not allow withdrawal from retirement accounts for the purchase of LTC insurance or tax-free exchanges of life insurance for LTC insurance.

Adds tax qualified treatment for certain state-maintained plans.

Adds a request for a study of the impact, including marketing and other effects of the per diem limits.

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