Ohio Long-Term Care Insurance

Partnership protection works dollar for dollar

For a Qualified Long-Term Care Partnership policy, Ohio disregards resources at Medicaid eligibility determination up to the amount of benefits the policy has paid. Ohio also applies the same dollar-for-dollar protection at estate recovery (OAC 5160:1-6-02.2; Ohio Revised Code § 5162.21).

This protection does not erase the rest of Ohio's Medicaid rules. Income, level of care, transfer history, and policy qualification still matter when a person later applies for Medicaid (OAC 5160:1-6-02.2).

Qualifying-policy requirements matter

ODI's consumer guide lists requirements that include issuance after September 10, 2007, Ohio residency when coverage became effective, federal tax qualification, compliance with ODI consumer standards, and inflation protection. It describes the result as one protected asset dollar for each dollar of benefits paid (ODI Long-Term Care Insurance Guide).

Do not infer Partnership status from the phrase "long-term-care insurance" alone. Ask the carrier for policy-specific confirmation and use ODI or OSHIIP resources to compare coverage terms and consumer protections (ODI long-term-care guide).

Keep insurance and Medicaid planning connected

Partnership coverage can be a planning tool, but it does not substitute for reviewing an applicant's income, resources, home, and possible future estate-recovery exposure. Ohio's expanded recovery rules make the second stage of the protection especially relevant (Ohio Revised Code § 5162.21).

Compare Florida's long-term-care-insurance page for another active Partnership program. For the broader insurance framework, see Traditional LTC 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).

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.