Page:United States Statutes at Large Volume 110 Part 3.djvu/330

 110 STAT. 2060 PUBLIC LAW 104-191—AUG. 21, 1996 (B) the addition of any provision required to conform any other long-term care rider to be so treated, shall not be treated as a modification or material change of such contract. (5) APPLICATION OF PER DIEM LIMITATION TO EXISTING CON- TRACTS.— The amount of per diem payments made under a contract issued on or before July 31, 1996, with respect to an insured which are excludable from gross income by reason of section 7702B of the Internal Revenue Code of 1986 (as added by this section) shall not be reduced under subsection (d)(2)(B) thereof by reason of reimbursements received under a contract issued on or before such date. The preceding sentence shall cease to apply as of the date (after July 31, 1996) such contract is exchanged or there is any contract modification which results in an increase in the amount of such per diem pa5anents or the amount of such reimbursements. 26 USC 7702B (g) LONG-TERM CARE STUDY REQUEST. —The Chairman of the °ote. Committee on Ways and Means of the House of Representatives and the Chairmsm of the Committee on Finance of the Senate shall jointly request the National Association of Insurance Commissioners, in consultation with representatives of the insurance industry and consumer organizations, to formulate, develop, and conduct a study to determine the marketing and other effects of per diem Reports. limits on certain types of long-term care policies. If the National Association of Insurance Commissioners agrees to the study request, the National Association of Insurance Commissioners shall report the results of its study to such committees not later than 2 years after accepting the request. SEC. 322. QUALIFIED LONG-TERM CARE SERVICES TREATED AS MEDI- CAL CARE. (a) GENERAL RULE.— Paragraph (1) of section 213(d) (defining medical care) is amended by striking "or" at the end of subparagraph (B), by redesignating subparagraph (C) as subparagraph (D), and by inserting after subparagraph (B) the following new subparagraph: "(C) for qualified long-term care services (as defined in section 7702B(c)), or". (b) TECHNICAL AMENDMENTS. — (1) Subparagraph (D) of section 213(d)(1) (as redesignated by subsection (a)) is amended by inserting before the period "or for any qualified long-term care insurance contract (as defined in section 7702B(b))". (2)(A) Paragraph (1) of section 213(d) is amended by adding at the end the following new flush sentence: "In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in paragraph (10)) shall be taken into account under subparagraph (D)." (B) Paragraph (2) of section 162(1) is amended by adding at the end the following new subparagraph: "(C) LONG-TERM CARE PREMIUMS.—In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in section 213(d)(10)) shall be taken into account under paragraph (1)."

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