C-Corporations:
Because long term care insurance is considered accident and health insurance, C-Corporations may generally deduct 100% of their LTC premium contributions as a general business expense. This deduction can be taken for all employees (including spouses, dependents, and retirees), and is not subject to age-based limits.
The employer is not required to provide LTC insurance on a non-discriminatory basis. They may deduct premium contributions whether coverage is provided under a group policy or under individual policies.
Premium contributions made on behalf of employees are generally excluded from their income. The income exclusion applies to the full amount of an employer's premium contribution, even if the cost exceeds age-based limits on deductibility for individuals (Internal Revenue Code Sections 106 & 213)