West Virginia has a statutory Partnership framework
West Virginia Code Article 9-4E directs the Bureau for Medical Services to establish a state-plan amendment for a qualified long-term-care Partnership policy’s dollar-for-dollar asset disregard. It says the individual’s assets that may be retained for Medicaid qualification are increased by each dollar paid under the qualifying Partnership policy, subject to the statutory program requirements (West Virginia Code §9-4E-3).
The insurance statute likewise refers to participation in the federal Long-Term Care Partnership Program. Those enactments establish a Partnership framework, but they do not by themselves identify which insurers are offering new qualifying policies in 2026 or whether a particular current policy is Partnership-qualified (West Virginia Code §33-12-8A; West Virginia Code §9-4E-3).
New-sale status needs direct confirmation
An older Office of the Insurance Commissioner Partnership-status notice was located, but no current 2026 state sales bulletin was located that affirmatively says the program is open to new sales or closed/legacy-only. This page therefore does not label it open or closed. Ask the insurer and the West Virginia Offices of the Insurance Commissioner whether the proposed or existing policy is a currently qualifying Partnership policy before paying a premium or planning around an asset disregard (West Virginia Partnership-status notice; West Virginia Offices of the Insurance Commissioner).
Even a confirmed Partnership policy does not erase other West Virginia long-term-care requirements. The public state guide describes spend-down where income is above the maximum, the ADW program has a capacity process, and estate recovery has its own rules; each question needs a separate answer (West Virginia Medicaid 2026 guide; West Virginia ADW program; BMS Chapter 900 Estate Recovery).
Questions to ask before relying on coverage
Ask whether the policy is available for new sale, whether it is Partnership-qualified, which benefits have actually been paid, what documentation the state will require, and how any protected resource will be identified in a later Medicaid application. Keep the policy, amendments, premium notices, benefit statements, and state disclosures with Medicaid-planning records.
Partnership conclusion: West Virginia retains statutory Partnership asset-disregard authority, but current new-sale availability was not verified from a 2026 state bulletin. Confirm with the carrier and Insurance Commissioner before treating any policy as a qualifying purchase (
West Virginia Code §9-4E-3;
West Virginia Insurance Commissioner).
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).
West Virginia state incentive: West Virginia allows a deduction for premiums, but only to the extent not already deducted on the federal return — 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.
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