Quick Guide to Understanding Partnership for Long Term Care

The Long Term Care Insurance (LTCI) Partnership Program is a federally-supported and state-operated initiative to reward those who plan ahead by buying individual LTCI. While the difference between a regular long term care policy and a partnership policy may seem confusing, use this quick guide to understanding Partnership for Long Term Care insurance.

What Is the Long Term Care Partnership Program?

The Long Term Care Partnership Program is supported by the federal government and operated at the state level. With long term care costs hemorrhaging many state Medicaid programs, this initiative was created to offer Medicaid Asset Protection to individuals who buy Long Term Care Insurance.

When an individual buys an LTC Partnership policy and exhausts their benefits, the amount the policy paid in benefits will be disregarded when calculating assets and eligibility for state Medicaid. This means you can keep assets dollar for dollar up to the benefits paid by your policy instead of spending down your assets to $2,000 to qualify for Medicaid.*

For example, if you bought an LTC Partnership policy with a $250,000 benefit pool and later exhausted your policy at the same amount, $250,000 of your assets are protected from Medicaid spend down rules.

What Makes an LTCI Policy Partnership Qualified?

First, the Partnership program must be approved in your state. The four original Partnership states (California, Connecticut, Indiana, and New York) have unique Partnership rules including specific agent licensing and training to sell Partnership policies. These four states also require a unique application for consumers to apply for Partnership policies.

For a policy to be Partnership qualified, you must select the appropriate level of inflation coverage based on your age. The four original states have their own unique inflation rules based on the age you buy your policy. We recommend speaking with an LTCI Specialist about Partnership in your state, including required inflation protection to qualify for Partnership protection.

Is Partnership Available in My State?

Many states offer Partnership, but some don’t, and the list is constantly being updated. To confirm if your state is participating in the Partnership program, chat with an LTCI Specialist licensed in your state.

The Partnership program rewards those who plan ahead for long term care by protecting their assets against Medicaid spend down. Get in touch with an LTCI Specialist today to start creating your long term care plan with Partnership protection.