About the Long-Term Care Partnership Programs


Long Term Care Partnership Policies allow consumers to keep some of their assets that they would most likely spend down in order to qualify for Medicaid when needing Long Term Care. Most Partnership Programs work on a Dollar-for-Dollar basis, for every dollar that a policy holder would use in their benefits, that is how much of your assets you can keep. Example, if you have a LTC Insurance Partnership Policy and you are using your Long Term Care Insurance benefits and you use $100,000 worth for care and your benefits run out so you need to go on Medicaid, $100,000 of your assets will be exempt from Medicaid spend down.

The Long-Term Care Insurance Partnership Program was developed in the 1980's to help encourage people to purchase long-term care insurance instead of turning to Medicaid. People who purchase Partnership policies deplete their insurance benefits they can then retain a certain amount of assets and still qualify for Medicaid. Until recently there were only 4 states that participated in the Long-Term Care Insurance Partnership Programs these states are: California, Connecticut, Indiana, and New York. The Deficit Reduction Act of 2005 (DRA 2005) now allows all states to participate in the Partnership Program. Partnership policies in these new Partnership states much meet certain criteria's such as federal tax-qualifications, identified consumer protections, and inflation protection. Compound Inflation protection will be required for the people under the age of 61 and some level of inflation protection will be required for people between 61 and 75. Currently there are over 30 states that offer Partnership policy's. When a state has reached its final regulations issued by the specific states Department of Insurance and has been allowed to launch the states Long-Term Care Insurance Partnership Program, that state will be added to this website.

Click here to see a list of the approved Partnership States.