HCS HB 40, 116 & 367 -- INCOME TAX DEDUCTION FOR LONG-TERM CARE
INSURANCE PREMIUMS

SPONSOR:  Portwood

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Ticket to Work by a vote of 8 to 0.

This substitute changes the laws regarding the long-term care
insurance income tax deduction.  For taxable years beginning
after January 1, 2007, Missouri residents will be allowed to
deduct from their taxable income an amount equaling 100% of all
nonreimbursed amounts paid for qualified long-term care insurance
premiums to the extent the amounts are included in the
individual's adjusted gross income.

The substitute establishes the Missouri Long-Term Care
Partnership Act which requires the departments of Social Services
and Insurance, Financial Institutions, and Professional
Registration to coordinate a long-term care insurance partnership
program where private insurance and Missouri Medicaid funds will
be used to finance long-term care.  Under the program, an
individual may purchase a qualified state long-term care
insurance policy that meets certain criteria without first being
required to substantially exhaust their resources.

The directors of the departments must submit a report on the
progress of the partnership program to the General Assembly on
September 1, 2008, and on January 1 each year thereafter.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of
Approximately $2,880,000 in FY 2008, FY 2009, and FY 2010.  No
impact on Other State Funds in FY 2008, FY 2009, and FY 2010.

PROPONENTS:  Supporters of HB 40 say that the bill benefits
senior citizens who are trying to take care of themselves by
allowing them to protect their assets, provides an incentive for
people to purchase an often out-of-reach but important insurance,
financially protects families of long-term care facility
patients, can save the Missouri Medicaid Program money, and is
necessary due to increasing health care costs.

Supporters of HB 116 and HB 367 say that the bills benefit senior
citizens who are trying to take care of themselves by allowing
them to protect their assets, provide an incentive for people to
purchase an often out-of-reach but important insurance, can save
the Missouri Medicaid Program money, and are necessary due to
increasing health care costs.

Testifying for HB 40 were Representative Portwood; AARP;
Association of Retired Missouri State Employees; Silver Haired
Legislature; Missouri Health Care Association; Alliance; Missouri
Association of Insurance and Financial Advisors; Bruce Ward, St.
Louis Chapter of Missouri Association of Insurance and Financial
Advisors; Franc Flotron, Golden Security Senior Advisors;
America's Health Insurance Plans; American Council of Life
Insurers; and Missouri Association of Homes for the Aging.

Testifying for HB 116 were Representative Denison; AARP;
Association of Retired Missouri State Employees; Silver Haired
Legislature; Missouri Health Care Association; and Alliance.

Testifying for HB 367 were Representative Dethrow; AARP;
Association of Retired Missouri State Employees; Silver Haired
Legislature; Missouri Health Care Association; and Alliance.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:17 am