2-009.07A5 Long-Term Care (LTC) Partnership Policy
Resources equal to the amount of benefits paid out by a qualified Long-Term Care Partnership policy are disregarded for an individual applying for Medicaid if the policy was issued on July 1, 2006, or later, and the individual is otherwise Medicaid-eligible. The benefits may be paid as direct reimbursement of long term care expenses, or paid on a per diem or other periodic basis, for periods during which the individual received long term care services. The disregard is applied to the amount of benefits paid to or for the individual as of the month of application, even if additional benefits remain available under the terms of the policy.
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Example 1: A client buys a Partnership LTC policy worth $100,000. He later enters a nursing home, and the policy eventually pays out $100,000. He can apply for Medicaid to cover his medical care now that his policy is exhausted. If approved for Medicaid, the client can protect up to $100,000 in resources that would otherwise have had to be liquidated and spent on his long-term care costs before the application for Medicaid would have been approved. Example 2: A client buys a Partnership LTC policy worth $300,000. She only has $200,000 in resources she wants to protect. Once the policy has paid out $200,000, the client would be eligible for Medicaid. |
The amount of the resource disregard is also excluded from estate recovery.
{1/19/08}
2-009.07A5a Definition of a Qualified Long-Term Care Partnership Policy
2-009.07A5b Exchange of Non-Partnership Policy for Qualified LTC Partnership Policy
2-009.07A5c Reciprocity with Other States