Long-Term Care Insurance


Partnership for LTCi

The Long-Term Care Partnership Program is a joint effort by state government and the private insurance industry that helps consumers plan to meet their future long-term care needs.

Partnership policyholders who apply for Medicaid coverage are able to earn dollar for dollar or total asset protection, lessening the burden to ‘spend down’ assets to qualify for Medicaid. This benefit is entirely government-funded and does not increase the cost of the insurance.

For instance, if a policyholder has a partnership-qualified long-term care policy with a value of $350,000, and uses the full value of the policy, when they start their asset spend down to qualify for Medicaid, they are allowed to keep $350,000 in assets above the normal Medicaid asset limit.

Partnership-qualified policies must meet special requirements that vary from state to state. Most states require partnership policies to:

  • Offer comprehensive benefits (that is to cover both home and facility services);
  • Be tax qualified;
  • Provide certain specific consumer protections; and
  • Include certain kinds of inflation protection.

Not all LTCi or hybrid policies qualify for Partnership. Partnership is important for certain applicants and not as important for others. To learn more about how Partnership works and if it makes sense for your situation, please contact an advisor.