What is a long-term care partnership program?

A Long-Term Care Partnership Program is a public-private partnership between states and the federal government (expanded nationwide by the Deficit Reduction Act of 2005) that adds a powerful benefit to a qualifying policy: dollar-for-dollar asset protection.

Here is how it works. Normally you must spend down most of your assets to qualify for Medicaid. With a Partnership policy, every dollar the policy pays in benefits lets you keep an extra dollar of assets and still qualify. If your policy pays out $250,000, you can protect roughly $250,000 in savings above your state's normal Medicaid limit.

To count, a policy must be Partnership-qualified — tax-qualified and meeting your state's requirements, including inflation protection for younger buyers. Most states offer these programs.

General information only. This is educational and not insurance, legal, tax, or financial advice. Rules and products vary and change — confirm the specifics with a licensed professional.