To be considered a qualified long-term care policy the policy must meet all the requirements of Section 6021 of the Deficit Reduction Act 2005. The long term-care policy, including a group policy, must meet the following conditions:
- The policy must cover a person who was a resident of the qualified partnership state when coverage first became effective. If a policy is exchanged for another, the residency rule applies to the issuance of the original policy.
- The policy must meet the definition of a “qualified long-term care insurance policy” that is found in section 7702B(b) of the Internal Revenue Code of 1986.
- The policy must meet specific requirements of the National Association of Insurance Commissioners (NAIC) Long-Term Care Insurance Model Regulations and Model Act.
- The policy must include inflation protection as follows:
- For purchasers under 61 years old, compound annual inflation protection;
- For purchasers 61 to 76 years old, some level of inflation protection; or
- For purchasers 76 years or older, inflation protection may be offered but is not required.
The Missouri Department of Insurance, Financial Institutions, and Professional Registration (DIFP) will certify which long-term care policies meet these requirements.