Georgia's Partnership feature can protect assets
Georgia's Long-Term Care Insurance Partnership Program took effect January 1, 2007, and qualifying policies issued on or after that date provide dollar-for-dollar Medicaid asset protection (DFCS PAMMS §2348; Georgia Long Term Care Insurance Rules).
The Medicaid-side meaning is that each dollar paid by a qualifying Partnership policy protects a dollar of countable assets from otherwise required Medicaid spend-down (DFCS PAMMS §2348).
Partnership protection does not itself answer income eligibility, level-of-care, or every other Medicaid requirement (DFCS PAMMS §2348).
Partnership protection is dollar for dollar: qualifying benefits paid can protect an equal amount of countable assets in a later Georgia Medicaid spend-down (
DFCS PAMMS §2348).
Current availability needs a fresh confirmation
Georgia's Partnership Program page appeared active during this research, and no closure notice was found, but the page did not provide an explicit statement that new qualifying policies are currently available for sale (Georgia Long-Term Care Partnership Program).
That is evidence to check, not a promise of current availability; confirm the program and a proposed policy's Partnership qualification directly with OCI, the insurer, or a licensed agent before purchase (Georgia Office of Insurance and Safety Fire Commissioner; Georgia Long-Term Care Partnership Program).
Long-term-care insurance is a private funding tool and must be coordinated with a family's income, assets, health, and desired care setting.
Evaluate the policy, not just the label
A qualifying Partnership policy can be materially different from a non-qualifying policy, and both differ from Medicaid itself. Compare Florida's long-term-care-insurance page and see Traditional LTC Insurance for the broader funding framework.
Request an insurer-specific illustration and have a qualified insurance professional explain whether a proposed policy satisfies Georgia Partnership requirements before committing to coverage.
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).
Georgia state incentive: Georgia 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.
