Is the Partnership open to new sales?
Rhode Island DBR’s long-term-care form and rate filing guidance contains a current Partnership Certification Filings section and identifies the issuer certification form and the requirements for Partnership qualification in Rhode Island. DBR’s 2018 consumer bulletin likewise says insurers may voluntarily participate by offering policies that meet state and federal requirements. Those state materials support treating the Partnership framework as available for qualifying sales rather than a closed legacy-only program, while policy availability must be confirmed with a licensed insurer or producer Rhode Island DBR LTC filing guidance; Rhode Island DBR Partnership consumer bulletin.
The resource disregard is not a feature of every private long-term-care policy. A person should obtain the carrier’s written confirmation that the specific policy is qualified as a Rhode Island Partnership policy and preserve the policy, amendments, benefit statements, and evidence of benefits paid. The active Medicaid rule also recognizes certain other qualifying LTC insurance payments as income-exempt or resource-disregarded, but reserves estate-recovery relief for a QLTCIP policy Rhode Island active LTSS financial-eligibility rule.
DBR regulates insurance filings and consumer protection
The Rhode Island Department of Business Regulation, Insurance Division, is the state insurance regulator relevant to long-term-care policy forms and rates. Its filing guidance identifies R.I. Gen. Laws chapter 27-34.2 and the Long-Term Care Insurance regulation, 230-RICR-20-35-1, and its consumer page says the Division regulates insurance lines of business and provides complaint assistance Rhode Island DBR LTC filing guidance; Rhode Island Insurance Division consumer guidance.
Long-term-care insurance can cover different settings and benefit designs, including care at home, assisted living, and nursing facilities. DBR warns consumers that policies vary in benefit amount, duration, facility coverage, and other terms. Compare inflation protection, elimination periods, service definitions, daily or monthly maximums, exclusions, premiums, rate-increase history, and carrier financial strength rather than buying on a Partnership label alone Rhode Island Insurance Division consumer guidance.
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).
Rhode Island state incentive: Rhode Island offers no separate state credit or deduction for LTC insurance premiums beyond 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.
