Special rules for chronically ill insureds
In the case of an insured who is a chronically ill individual—
(A) In general
(A)In general#
Paragraphs (1) and (2) shall not apply to any payment received for any period unless—
(i) such payment is for costs incurred by the payee (not compensated for by insurance or otherwise) for qualified long-term care services provided for the insured for such period, and
(ii) the terms of the contract giving rise to such payment satisfy— (I) the requirements of section 7702B(b)(1)(B), and (II) the requirements (if any) applicable under subparagraph (B).
For purposes of the preceding sentence, the rule of section 7702B(b)(2)(B) shall apply.
(A)(i)#
such payment is for costs incurred by the payee (not compensated for by insurance or otherwise) for qualified long-term care services provided for the insured for such period, and
(A)(ii)#
the terms of the contract giving rise to such payment satisfy—
(I) the requirements of section 7702B(b)(1)(B), and
(II) the requirements (if any) applicable under subparagraph (B).
(A)(ii)(I)#
(B)Other requirements#
The requirements applicable under this subparagraph are—
(i) those requirements of section 7702B(g) and section 4980C which the Secretary specifies as applying to such a purchase, assignment, or other arrangement,
(ii) standards adopted by the National Association of Insurance Commissioners which specifically apply to chronically ill individuals (and, if such standards are adopted, the analogous requirements specified under clause (i) shall cease to apply), and
(iii) standards adopted by the State in which the policyholder resides (and if such standards are adopted, the analogous requirements specified under clause (i) and (subject to section 4980C(f)) standards under clause (ii), shall cease to apply).
(B)(i)#
those requirements of section 7702B(g) and section 4980C which the Secretary specifies as applying to such a purchase, assignment, or other arrangement,
(B)(ii)#
standards adopted by the National Association of Insurance Commissioners which specifically apply to chronically ill individuals (and, if such standards are adopted, the analogous requirements specified under clause (i) shall cease to apply), and
(B)(iii)
(C)Per diem payments#
A payment shall not fail to be described in subparagraph (A) by reason of being made on a per diem or other periodic basis without regard to the expenses incurred during the period to which the payment relates.
(D)Limitation on exclusion for periodic payments#
For limitation on amount of periodic payments which are treated as described in paragraph (1), see section 7702B(d).