While all firms can benefit by offering Long Term Care insurance as an employee benefit, it is currently not deductible to individuals, unless they are owners in the firm. 1 Firms can provide LTC as a deductible benefit, depending on the business type. The Health Insurance Portability and Accountability Act of 1996 clarified the taxation of Long Term Care insurance.
Tax deductions vary by business type, yet benefits remain tax free.
Businesses can actually discriminate in providing benefits for classes of employees, such as owners and key executives, even directors. Law Firms 3.