SB 288
Caps rate increases for long-term care insurance policies at the lesser of the Consumer Price Index or five percent, measured annually
Sponsor:
LR Number:
0158S.01I
Last Action:
4/20/2021 - SCS Voted Do Pass S Insurance and Banking Committee (0158S.05C)
Journal Page:
Title:
Calendar Position:
Effective Date:
August 28, 2021

Current Bill Summary

SCS/SB 288 - This act modifies provisions relating to insurance.

TAX DEDUCTION FOR CERTAIN INSURANCE PREMIUMS (Section 135.096)

This act modifies a tax deduction for certain long-term care insurance policies to include any insurance policy considered an asset or resource for purposes of eligibility for long-term care benefits under MO HealthNet. (Section 135.096.2).

TAX CREDIT FOR CERTAIN INSURANCE PREMIUMS (Section 135.098)

For all tax years beginning on or after January 1, 2022, in addition to the deduction allowed under the act, the act authorizes a tax credit equal to 100% of the first $1000, and 50% of additional amounts, of nonreimbursed premiums paid by a taxpayer for qualified long-term care insurance, as defined in the act, during the tax year. The tax credit shall not be transferred, sold, or assigned, but shall be refundable. (Section 135.098.2).

A taxpayer shall apply for the credit authorized by this act at the same time such taxpayer files a return. The Department of Revenue may require any documentation it deems necessary to determine the value of the tax credit. (Section 135.098.3).

PREMIUM RATE INCREASES FOR LONG-TERM CARE INSURANCE (Section 376.1109)

This act also provides that no long-term care insurance policy shall increase premium rates, measured annually, in excess of the amount that is actuarially justified based on credible experience, calculated in a way that results in no cross-state subsidization. (Section 376.1109.13).

This act contains provisions similar to SB 1067 (2020).

ERIC VANDER WEERD

Amendments

No Amendments Found.