The statutory Partnership framework
Mississippi Code §43-13-605 creates the Mississippi Long-Term Care Partnership Program within DOM. The law directs DOM, working with the Insurance Commissioner, to seek federal approval, establish a policy precertification process and minimum policy features, and include consumer outreach and reciprocity provisions (Mississippi Code §43-13-605).
The statute says a Medicaid long-term-care or related-waiver eligibility determination for a beneficiary of a precertified policy shall include a resource disregard of one dollar for every dollar of qualifying long-term-care insurance benefits paid. That is the statutory asset-protection concept, not a conclusion that every Mississippi LTC policy has Partnership status (Mississippi Code §43-13-605).
Current sales status needs direct confirmation
The located statute establishes the program and its intended protections, but it does not say that approved Partnership policies are currently being marketed or sold. The located DOM and MID consumer pages likewise did not identify a current carrier list, approved policy list, or an open-versus-closed sales status. This page therefore does not label the Partnership program open, closed, or legacy-only without a current written confirmation.
A buyer considering Medicaid asset protection should ask the Mississippi Insurance Department, DOM, and the insurer whether the exact policy is currently precertified as a Mississippi Partnership policy, how benefits are reported, and whether the policy’s terms match the statutory requirements. The answer must be tied to the issued policy rather than to the general word “Partnership.”
Do not assume status: Mississippi law creates a dollar-for-dollar Partnership resource disregard for benefits under a precertified policy, but the located official pages did not confirm current approved-policy sales (
Mississippi Code §43-13-605).
Federal Tax Incentives for LTC Insurance Premiums (2026)
Beyond any state-level benefit, a tax-qualified LTC insurance contract (one meeting IRC § 7702B)
carries several federal tax benefits, and a number of the relevant limits increased for 2026:
- Age-based premium deduction: eligible premiums count as a medical expense on
Schedule A (to the extent total unreimbursed medical expenses exceed 7.5% of AGI), up to 2026 limits
of $500 (age 40 or younger), $930 (41–50), $1,860 (51–60), $4,960 (61–70), and $6,200
(over 70) — all increased from 2025 (IRS Revenue Procedure 2025-32, § 4.27).
- Self-employed and business deductions: self-employed individuals can deduct 100%
of eligible premiums up to the same age-based limits without itemizing, and C-corporations can generally
deduct LTC premiums paid for employees as an ordinary business expense under IRC § 162, uncapped by
the individual age-based limits.
- Tax-free benefits: benefits from a tax-qualified contract are generally excluded
from income under IRC § 7702B(d); per-diem/indemnity contracts are tax-free up to $430/day (about
$13,079/month) for 2026 (IRS Revenue Procedure 2025-32, § 4.62).
- HSA-funded premiums: HSA funds can be withdrawn tax-free to pay eligible LTC
premiums, up to the same age-based limits above.
- New for 2026 — penalty-free retirement withdrawals: SECURE 2.0 Act § 334
lets eligible 401(k), 403(b), and governmental 457(b) participants under 59½ withdraw funds to pay
premiums on a certified LTC contract without the usual 10% early-withdrawal penalty, up to the least of
the actual premium paid, 10% of the vested account balance, or a statutory cap of $2,600 for 2026. The
distribution itself is still fully taxable as ordinary income and is not available from IRAs
(IRS Notice 2026-33).
Mississippi state incentive: Mississippi offers a credit equal to 25% of premium costs, capped at $500 per policy, nonrefundable with no carryforward — on top of the federal incentives above (
Got LTCi, State Tax Incentives).
State tax rules change frequently and the credit/deduction summary above is not exhaustive —
confirm current eligibility, forms, and amounts with your state department of revenue or a tax
professional before relying on any figure here.
Not mutually exclusive. Most families combine two or three funding pillars — this one rarely stands alone.
The
Journey Assessment ranks all ten pillars against your specific situation and
recommends the top three.
