Health Savings Account

Reimbursement of LTC Insurance Premiums Through HSA Accounts

Long term care insurance premiums for tax-qualified policies can be reimbursed under a Health Savings Account, up to the limits set by the Internal Revenue Service.

In general, here’s how the process works:

  1. Long term care insurance premiums for employees and spouses are paid with post tax dollars.
  2. The employee keeps track of the total premiums paid during the calendar year.
  3. Employees can reimburse themselves with pre-tax HSA dollars, subject to the age-based limitations indicated below.
  4. Employees are responsible for their own record keeping.

The following information is provided in IRS Publication 969 – Health Savings Accounts and Other Tax-Favored Health Plans :

Insurance premiums. You cannot treat insurance premiums as qualified medical expenses unless the premiums are for:

  1. Long term care insurance.
  2. Health care continuation coverage (such as coverage under COBRA).
  3. Health care coverage while receiving unemployment compensation under federal or state law.
  4. Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

The premiums for long term care insurance (item (1)) that you can treat as qualified medical expenses are subject to limits based on age and are adjusted annually. See limit on long term care premiums you can deduct in the instructions for Schedule A (Form 1040).

Here are the 2024 and 2025 Tax deductible limits for eligible long term care insurance premiums.

Attained age before the close of the taxable year Maximum deduction for 2024 Maximum deduction for 2025
40 or Less $470 $480
More than 40 but not more than 50 $880 $900
More than 50 but not more than 60 $1,760 $1,800
More than 60 but not more than 70 $4,710 $4,810
More than 70 $5,880 $6,020

Source: IRS Revenue Procedure 2023-34(2024 limits) and 2024-40(2025 limits).

Review My Coverage

Our Licensed Specialists are ready to help you!

877-485-2318 [email protected] Schedule an appointment
Powered by AGIS Network © Copyright 2025. All Rights Reserved.

Long term care coverage may not be issued or approved until underwriting has completed any applicable underwriting review. In addition to possible medical questions asked during the application process, you may be contacted by a company representative or their vendor for additional information and/or you may be requested to take additional actions prior to approval of your long term care application (Ex: Attending Physician’s Statement, Underwriting Assessment, Medical Examination, etc.). Completing an application is not a guarantee that the application will be approved. If you do not respond to carrier underwriting requests in a timely manner, your application for long term care coverage may be denied. Some carriers may consider you ineligible for future coverage if previous application requests are denied. In addition, please be aware that carriers may impose an actively-at-work requirement that may delay coverage if you are absent from work due to injury, sickness, temporary layoff or leave of absence on your coverage effective date (or during a period prior to your effective date, as defined by the carrier) and may not begin until you return to work in active employment.

Any solicitation or invitation to discuss insurance sales or servicing is being provided at the request of AGIS Network, an owned subsidiary of Strategic Non-Medical Solutions, LLC (in California dba Strategic Ancillary Insurance Solutions). AGIS Network only provides insurance related solicitations or services to insureds or insured risks in jurisdictions where it and its individual insurance professionals are properly licensed. No part of this document may be reproduced in any form or reproduced by any electronic or mechanical means, including information storage and retrieval devices or systems, without prior written permission from AGIS Network.

Coverage Details
Resources
Contact Us