--- title: "Long-Term Care Funding in Tennessee | Funding LTC Marketplace" url: https://fundingltcmarketplace.com/states/tennessee/ description: "Tennessee's TennCare CHOICES income cap, daily transfer penalty, and TOD deed rules for long-term-care planning." author: George A. Mellendorf, CLTC, LTCP (Central States Insurance Services, Inc.) publisher: Funding LTC Marketplace note: Educational content; not legal, tax or financial advice. Markdown copy of the HTML page at the URL above. --- State Funding Guide # Long-Term Care Funding in Tennessee Tennessee bundles nursing-facility and home-based long-term care into a single program called TennCare CHOICES, but its $2,982 monthly income cap means a Qualifying Income Trust often becomes essential rather than optional. Unlike states that only apply a net-income test, Tennessee's hard cap makes income planning as important as asset planning from day one. The state also authorizes a transfer-on-death deed for real property, and it's nontestamentary under Tennessee's Uniform Real Property Transfer on Death Act — but a beneficiary who receives property this way takes it subject to existing TennCare claims. Avoiding probate, in other words, is not the same as avoiding recovery. ## Why Tennessee is different - **Hard income cap.** TennCare CHOICES uses a $2,982-per-month income limit; going over it typically requires a Qualifying Income Trust rather than simply spending down. - **Three CHOICES groups.** Group 1 and Group 2 require nursing-facility level of care; Group 3 serves people at risk of needing that level of care without home-based support. - **Daily transfer penalty.** Tennessee calculates its 2026 transfer penalty using a daily divisor of $295.87 (equivalent to $8,846.10 per month), rather than a purely monthly calculation. - **TOD deed doesn't defeat TennCare claims.** The Act makes the deed nontestamentary, but a beneficiary takes the property subject to TennCare's claims and other existing interests at death. - **Recovery includes the full premium.** TennCare recovers the long-term-care portion of the managed-care premium paid on a member's behalf — even in months where the member used less care than the premium covered. ## Tennessee at a glance - Individual resource limit: $2,000 - LTSS income cap: $2,982/month - Nursing-facility personal-needs allowance: $70/month - Look-back period: 60 months - 2026 transfer divisor: $295.87/day, or $8,846.10/month - 2026 federal CSRA range (TennCare resource-assessment framework): $32,532–$162,660 ## Which situation matches yours? | If this is your situation | Start here | |---|---| | Care Needed NowA hospital discharge, an imminent facility decision, or home care that has already started. | [Tennessee Medicaid Look-Back Period](https://fundingltcmarketplace.com/states/tennessee/medicaid-look-back-period/)[Tennessee VA Aid & Attendance](https://fundingltcmarketplace.com/states/tennessee/va-aid-attendance/) | | Care Within 1-3 YearsMemory changes, a recent fall, or a new diagnosis have made the timeline real, even though care isn't needed today. | [Tennessee VA Aid & Attendance](https://fundingltcmarketplace.com/states/tennessee/va-aid-attendance/)[Tennessee Long-Term Care Planning](https://fundingltcmarketplace.com/states/tennessee/long-term-care-planning/) | | Planning AheadNo diagnosis and no crisis yet — just the recognition that long-term care is a when, not an if, for most people. | Tennessee Long-Term Care Insurance[Tennessee Long-Term Care Planning](https://fundingltcmarketplace.com/states/tennessee/long-term-care-planning/) | | Veteran or surviving spouse of wartime serviceA federal pension benefit layers on top of whatever the situation and state rows already point to. | [Tennessee VA Aid & Attendance](https://fundingltcmarketplace.com/states/tennessee/va-aid-attendance/) | | Owns significant home equityThe home is typically exempt from Medicaid counting during life but still affects estate recovery and private-pay runway. | [Tennessee Transfer-on-Death Deed](https://fundingltcmarketplace.com/states/tennessee/transfer-on-death-deed/)[Tennessee Medicaid Long-Term Care](https://fundingltcmarketplace.com/states/tennessee/medicaid-long-term-care/) | | Already has LTC insurance or a hybrid policy in forceThe existing policy is usually spent first; other pillars become supplemental once its benefits run out or a gap remains. | Tennessee Long-Term Care Insurance[Tennessee Medicaid Long-Term Care](https://fundingltcmarketplace.com/states/tennessee/medicaid-long-term-care/) | ## The 10 funding pillars in Tennessee Every pillar below has its own dedicated Tennessee page with the current rules, dollar figures, and what to do next. - [Tennessee Medicaid Long-Term Care](https://fundingltcmarketplace.com/states/tennessee/medicaid-long-term-care/) (Medicaid Program): How TennCare CHOICES combines nursing-facility care and home- and community-based services. - [Tennessee Medicaid Asset Limits](https://fundingltcmarketplace.com/states/tennessee/medicaid-asset-limits/) (Financial Eligibility): Tennessee’s 2026 LTSS resource limits, income cap, home-equity rule, and community-spouse framework. - [Tennessee Medicaid Look-Back Period](https://fundingltcmarketplace.com/states/tennessee/medicaid-look-back-period/) (Look-Back & Penalties): Tennessee’s 60-month transfer review and its 2026 daily penalty divisor of $295.87. - [Tennessee Transfer-on-Death Deed](https://fundingltcmarketplace.com/states/tennessee/transfer-on-death-deed/) (Asset Protection Tool): Tennessee’s TOD deed is nontestamentary, but beneficiaries take subject to TennCare claims and other interests. - [Tennessee Medicaid Estate Recovery](https://fundingltcmarketplace.com/states/tennessee/medicaid-estate-recovery/) (Estate Recovery): TennCare recovery follows death for qualifying CHOICES members, with waiver and hardship processes. - [Tennessee Nursing Home Medicaid](https://fundingltcmarketplace.com/states/tennessee/nursing-home-medicaid/) (Nursing Home Coverage): CHOICES nursing-facility coverage uses a level-of-care determination and a $70 monthly personal-needs allowance. - [Tennessee Home Care Medicaid](https://fundingltcmarketplace.com/states/tennessee/home-care-medicaid/) (Home & Community Care): CHOICES offers HCBS through Group 2 and at-risk Group 3, where available funding slots can matter. - [Tennessee Long-Term Care Planning](https://fundingltcmarketplace.com/states/tennessee/long-term-care-planning/) (Planning Ahead): Tennessee planning centers on the income cap, QIT requirements, daily transfer penalty, and title-aware home planning. - [Tennessee VA Aid & Attendance](https://fundingltcmarketplace.com/states/tennessee/va-aid-attendance/) (VA Benefits): Coordinate VA benefits with TennCare’s individual budget while considering Tennessee’s four State Veterans Homes. - [Tennessee Long-Term Care Insurance](https://fundingltcmarketplace.com/states/tennessee/long-term-care-insurance/) (LTC Insurance): Tennessee’s active LTC Partnership program can provide asset disregard for a qualifying policy but does not guarantee TennCare. Participates in the State Long-Term Care Partnership Program. ## Sources and official resources - [TennCare: CHOICES](https://www.tn.gov/tenncare/long-term-services-supports/choices.html) - [Tennessee Department of Commerce & Insurance: Consumer Resources](https://www.tn.gov/commerce/insurance/consumer-resources.html) - [TennCare: Long Term Care Partnership](https://www.tn.gov/content/dam/tn/tenncare/documents/LongTermCarePartnership.pdf) - [CMS: 2026 SSI and Spousal Impoverishment Standards](https://www.medicaid.gov/federal-policy-guidance/downloads/cib04272026.pdf) - [U.S. Code: 42 U.S.C. § 1396p (liens, estate recovery, transfers of assets, Partnership disregard)](https://www.law.cornell.edu/uscode/text/42/1396p) Rules and figures change. Confirm current details with the agency before you act.