Partnership Long-Term Care Insurance: Frequently Asked Questions

A Partnership for Long-Term Care (LTC) qualified policy is a state-certified long-term care insurance policy that provides special Medicaid asset protection. Authorized under Section 6021 of the 2005 Deficit Reduction Act, these policies allow policyholders to apply for Medicaid under modified eligibility rules. For every dollar the policy pays in benefits, an equal dollar of your assets is protected — or "disregarded" — in the Medicaid eligibility process. This means you can keep far more assets than the standard Medicaid threshold (typically $2,000 for a single individual) when you eventually need to apply.

The dollar-for-dollar asset disregard is straightforward: if your Partnership LTC policy pays $200,000 in benefits over your care period, you are allowed to retain $200,000 in assets when applying for Medicaid — assets that would otherwise need to be spent down to below $2,000. If your policy pays $400,000 in benefits, you can keep $400,000. Because Partnership policies require inflation protection and your benefits grow over time, the amount actually protected may be even higher than your original coverage amount.

New Partnership states (policies currently available): Alabama, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Idaho, Iowa, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

Original Partnership states (different program rules — see individual state pages): California, Connecticut, Indiana, New York. Note: policies may not currently be available for all of these.

Non-Partnership states (no program): Alaska, Hawaii, Massachusetts, Mississippi, Utah, Vermont, Washington D.C.

Select your state on our homepage or view the Partnership map for details.

Partnership policies must include mandatory age-appropriate inflation protection at the time of purchase:

• Age 60 and under: Automatic compound inflation protection is required
• Ages 61–75: Any form of inflation protection (compound or simple) is required
• Age 76 and older: Inflation protection is discretionary

Yes. Partnership LTC policies also provide estate recovery protection, in addition to protecting assets during your lifetime. Without a Partnership policy, Medicaid can seek to recover the cost of care paid on your behalf from your estate after death — potentially claiming your home, savings, and other assets. With a Partnership policy, the amount of assets equal to the benefits your policy paid cannot be pursued through Medicaid estate recovery. This is a significant benefit for preserving assets for your heirs.

The key differences are:

• Asset protection: Partnership policies provide Medicaid dollar-for-dollar asset disregard; standard LTC policies do not.
• Estate recovery protection: Partnership policies protect your estate from Medicaid recovery; standard policies do not.
• Inflation protection: Partnership policies require mandatory inflation protection; standard policies may offer it optionally.
• State certification: Partnership policies must be approved and certified by your state; not all LTC policies qualify.

The underlying coverage mechanics — daily benefit amount, benefit period, elimination period, ADL triggers — are similar between Partnership and non-Partnership policies.

A Partnership LTC policy is a traditional standalone long-term care insurance policy that includes Medicaid asset protection. A life insurance policy with an LTC rider — or an annuity with an LTC rider — is a hybrid product that can pay for LTC expenses, but does NOT qualify for Partnership asset protection. If protecting assets from Medicaid spend-down is a priority, a traditional Partnership-qualified policy is the appropriate choice. See our Life Insurance/LTC page for a full comparison.

Not all LTC insurance policies are Partnership-qualified. To find out, check your policy documents for a "Partnership Disclosure Notice" or Partnership certification language. You can also call your insurance company directly and ask whether your policy is a state-certified Partnership policy. Your state's Medicaid agency can also verify this. See our Is My Policy Partnership? page for detailed guidance.

Many states have reciprocity agreements that honor Partnership asset protection earned in another state, but this is not universal. If you move to a new state after receiving Partnership LTC benefits, contact the new state's Medicaid office to confirm whether your protected assets will be recognized. Your actual LTC insurance coverage — the policy benefits — generally travels with you regardless of state. We recommend checking portability rules before or shortly after a move.

A licensed healthcare practitioner must certify that you need substantial assistance with at least 2 of the 6 Activities of Daily Living (ADLs) — bathing, dressing, eating, transferring, toileting, and continence — for at least 90 consecutive days, OR that you require continual supervision due to severe cognitive impairment such as Alzheimer's disease. When comparing policies, look for those requiring only 2 ADLs to trigger benefits. Some group plans require 3 ADLs, which means a longer wait before benefits begin.

Long-term care is not just a senior issue. Nationally, 40% of all people currently receiving long-term care are between the ages of 18 and 64. A serious accident, surgery, or chronic illness can create a care need at any age. People may also use LTC insurance more than once — recovering from a major surgery in their 50s and again for age-related needs in their 70s or 80s. The younger and healthier you are when you apply, the lower your premium and the greater your chance of qualifying.

Premiums depend on your age, health, and the benefits you choose. Generally, policies offer daily benefits of $50–$400 ($1,500–$12,000/month) with benefit periods of 2–6 years. Annual premiums typically range from under $1,000 to over $5,000 depending on your profile. Consider this: it takes a $2 million investment portfolio earning 5% annually to generate $100,000/year — roughly equal to one year of nursing home care. LTC insurance transfers this risk for a fraction of that amount. Get a quote for your specific situation.

Don't assume you can't qualify without checking. Many people with histories of heart attacks, certain cancers, diabetes, and other conditions can still qualify. Denial rates by age: ~16% for applicants 50–59; ~24% for ages 60–69; ~41% for ages 70–79. If one spouse can't qualify, the other should still apply — the insured spouse's policy protects the household. If you truly cannot qualify for traditional LTC insurance, hybrid products like life insurance with an LTC rider may be an option, though they do not carry Partnership asset protection. See Can You Qualify? for more detail.

Yes. Long-term care insurance premiums are regulated by each state's department of insurance. Every licensed agent and broker must charge the same premium for the same policy from the same insurer. The quotes we provide are identical to going directly to the insurance company — there is no cost difference. Using an independent broker like us allows you to compare multiple companies and find the best plan for your needs at no extra charge.