These are fantastic programs that are significantly under promoted! Partnership programs reward you for having the foresight to secure LTC Insurance. They do this by providing you the possibility of qualifying for Medicaid LTC Assistance without your having to spend down your savings to the state’s Medicaid Impoverishment Threshold. That means you may be able to qualify for Medicaid Assistance — without spending down your money first.
Many states offer State Long Term Care Insurance Partnership Programs. Find out if your state offers such a program. Although these programs can differ slightly from state to state, they all follow a similar premise.
If you purchase a State Partnership “Qualified” Long Term Care Insurance Policy, the state will “disregard” a certain amount of your personal assets (savings) if you use up your policy’s LTC benefits and then apply to Medicaid. The amount disregarded is in addition to your usual “non countable assets”, and is typically equal to the amount of total benefits (dollar for dollar) that your policy has paid out to you.
There is no additional premium charged to have a “Partnership Qualified” plan. As long as your plan provides the benefit structure required by your state to be Partnership Qualified you’re in. This is a free added level of protection tacked on to the back end of your policy.
You ultimately may never need the added Medicaid benefit, but it can’t hurt to have the extra layer of protection, the future is unknown.
Important: Hybrid Life or Annuity LTC policies do not qualify for State Partnership Programs, only Traditional LTC Plans can qualify for State LTC Partnership Program.