The majority of 1099LTC forms I see and marked as reimbursed, so I just make sure the medical expenses were reporting on Sch A arent double dipping with the reimbursed LTC monies, I dont enter the actual 1099LTC anywhere. 

(I remember reading the instructions on the backside of the form a couple decades ago and thats what it said to do and so Ive always done it that way)

If its marked Per Diem, then you may have some taxable income from it, since you didnt necessarily spend all the money sent per diem on medical expenses.