S. 1473 — Introduced in Senate

II 113th CONGRESS 1st Session S. 1473 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. 1. Short title This Act may be cited as the Long-Term Care Insurance Consumer Right-to-Know Act of 2013. 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. 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. 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. 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.