Long-Term Care: Partnership Programs

In a Long-Term Care (LTC) Partnership program, a state government and private health insurers work together to make available to residents of that state LTC policies that are “linked” to Medicaid. If a buyer of a Partnership LTC policy later faces long-term care needs that exceed the policy’s limits, he or she may apply for assistance from the state’s Medicaid program under more relaxed eligibility rules. This means that the policyholder may keep larger amounts of assets than would normally be allowed under the standard Medicaid guidelines. Please note that these relaxed eligibility rules only apply to assets that may be retained – all other standard Medicaid qualification guidelines apply.

For example, Michelle, a single woman, purchases a partnership LTC policy, which has a total benefit of $100,000. She later uses the full benefit of $100,000. She then applies for, and is eligible for, Medicaid. Because she had first received benefits through a partnership LTC policy, she is allowed to retain $102,000 in assets and her state will not seek to recover that amount after her death. Otherwise, she would have had to “spend down” her assets until she only had $2,000 left.

This can get quite complicated so, for more information, go to: http://www.thriftytermquote.com/contact-us/

2 thoughts on “Long-Term Care: Partnership Programs

  1. longtermcarehub

    Reblogged this on longtermcarehub and commented:
    Long term care insurance partnership program is another option for people who will need long term care in the future. According to http://www.ltcoptions.com, this is also known as Medicaid Asset Protection. This is perfect for people who have assets to protect but need to qualify for Medicaid without having to meet the program’s minimum asset requirement. So even if you have high income and you have a lot of assets, you can now purchase long term care insurance under the partnership program. However, your policy should have inflation rider to become eligible for this program.


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