WAG 07-02-23.

Special consideration of assets and asset transfers is provided to persons who purchase and use insurance that meets requirements of the Long Term Care Partnership Insurance Program. Insurance policies that meet the requirements are called "Partnership" policies.

Partnership policies are offered as an incentive for persons to purchase long term care insurance. They provide insurance coverage and allow for an asset protection amount for Medicaid eligibility that is not available through other long term care insurance policies. However, the asset protection amount does not apply when determining Qualified Medicare Beneficiary (QMB) or Specified Low-Income Medicare Beneficiary (SLIB) eligibility.

In the initial determination/REDE of eligibility of a person who has a Partnership policy with benefits exhausted, the amount of assets disregarded is called the asset protection amount. It applies to an amount and not to specific assets. The amount protected is in addition to any exempt assets or other disregarded amounts. It is also in addition to any amount that may be transferred as the Community Spouse Asset Allowance (CSAA). The protected amount is equal to:

  • all assets of a person who purchases a Partnership policy with coverage equal to, or greater than, the average cost of 4 years of long term care services in a nursing facility, provided that the person has received all benefits payable under the policy; or
  • the total amount paid out of a Partnership policy with coverage less than the average cost of 4 years of long term care services in a nursing facility, provided that the person has received all benefits payable under the policy.

Although the asset protection amount is disregarded for Medicaid eligibility, the Department has the right to claim for medical payments spent on clients who purchase and use Partnership policies. This includes the right to claim against any assets protected under a Partnership policy. See PM 23-09-00 about liens and estate claims.

Disregard transfers of the asset protection amount. Asset transfer policy does not apply to assets protected under a Partnership policy. Protected assets may be used or saved as the client wants.