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

COMMITTEE OF ORIGIN:  Special Committee on Ticket to Work

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 Program
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 Department of Insurance, Financial Institutions, and
Professional Registration can certify qualified state long-term
care insurance partnership policies and is required to develop
training requirements for individuals who sell qualified
long-term care partnership policies.

The issuers of qualified long-term care partnership policies must
submit regular reports to the Secretary of the United States
Department of Health and Human Services, as required by federal
law, and to the departments of Social Services and Insurance,
Financial Institutions, and Professional Registration.

The provisions of the substitute will expire six years from the
effective date.

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.

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