Is Form 8853 providing a reasonable and correct answer?

I spent $77,733 on LTC for my wife and received total reimbursement amounts of $102,399 from two LTC insurance policies. It would seem to me that the excess of $24,666 should be the amount on which I should pay additional income tax.

 

In completing IRS Form 8853, I had to struggle to get around (i.e., ignore) the fact that the combined amount received from the insurance company was NOT "per diem or other periodic basis." Using one LTC period of 365 days, the result from IRS Form 8853 on line 26 was that I owe taxes on $55,148. How can this be? Is there an alternative method for declaring the additional income of $24,666?