How does a long-term care partnership policy work?
States are required to develop partnerships using the dollar for dollar model. For every dollar that a long-term care partnership insurance policy pays out in benefits, a dollar of personal assets can be protected (disregarded during the eligibility determination) if the individual chooses to apply for Medicaid. In other words, long-term care partnership policyholders who apply for Medicaid coverage are able to maintain some level of assets (equal to the long-term care insurance benefits paid) above the $999.99 Medicaid asset limit currently in place for eligibility purposes.
