Montana’s Partnership program is open, not legacy-only
The Commissioner’s current page says that a separate type of insurance is available in Montana to help protect against having to spend down assets for Medicaid long-term-care assistance, calling it a long-term-care partnership plan. It says partnership policies are not sold by every company and supplies a list of companies that sell Partnership policies in Montana (Montana long-term-care Partnership information).
A live regulator-maintained seller list is evidence that the Partnership program is available for new sales rather than merely a closed legacy program. It does not mean every product from every listed carrier qualifies, is available to every applicant, or is suitable for a particular health and financial situation (Montana long-term-care Partnership information).
The regulator’s page identifies sellers including American General Life, Assurity, Bankers Life, Genworth, John Hancock, LifeSecure, MassMutual, Mutual of Omaha, National Guardian Life, New York Life, Northwestern Long Term Care, State Farm, Thrivent, Transamerica, and United of Omaha. Carrier listings can change, so the purchaser should request the specific Montana Partnership confirmation for the product under consideration (Montana long-term-care Partnership seller list).
Partnership insurance and Medicaid do different jobs
Montana’s regulator explains the Partnership concept in the context of Medicaid’s limited-asset eligibility: a qualifying policy can be relevant to protecting against otherwise having to use up assets for Medicaid long-term-care assistance. It does not state that a policy erases income, functional, transfer, application, or care-planning rules (Montana long-term-care insurance information).
For comparison, Montana’s current Medicaid policy still applies resource standards, home-equity rules, a 60-month transfer review, and a post-eligibility nursing-home budget. A Partnership policy should therefore be reviewed as one funding layer rather than as an automatic substitute for careful Medicaid planning (DPHHS CMA 001 resource standards; DPHHS CMA 402-1 home policy; DPHHS CMA 404-1 transfer policy).
Before buying or relying on a policy
Ask the licensed producer and carrier whether the exact policy is certified as a Montana Partnership policy, what benefits have actually been paid, what inflation protection applies, and what documentation will be needed for a later Medicaid application. Retain the policy, Partnership notice, carrier communications, and claims records.
The Commissioner’s page also notes the historical liquidation of Penn Treaty Network America Insurance Company and American Network Insurance Company on March 1, 2017, with guaranty-association arrangements subject to applicable limits and policy terms. That history is a reminder to evaluate carrier and policy protections rather than a forecast about another company (Montana long-term-care insurance information).
Montana Partnership status: active regulator information says qualifying Partnership plans are available and identifies companies that sell them in Montana. Confirm the particular policy’s certification and terms before relying on asset-protection expectations (
Montana Commissioner of Securities and Insurance).
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).
Montana state incentive: Montana offers a caregiver-expense credit (up to $5,000 per qualifying family member, $10,000 for two or more) that can include LTC premiums, plus a separate premium deduction if not claimed elsewhere — 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.
