How can a person benefit by purchasing a Partnership policy?

Participants who fulfill the requirements of the Partnership program may continue to receive long-term care beyond the benefit period of the specific policy purchased by applying for Medicaid Extended Coverage. Once the participant has satisfied the requirements of his or her policy, he or she may qualify for Medicaid Extended Coverage . Unlike regular Medicaid, Medicaid Extended Coverage allows participants to protect some or all of the participant's assets (depending upon the specific Partnership policy purchased) from having to be spent on long-term care.

There are two types of asset protection under the Partnership:

Total Asset Protection:

All assets are “protected” and there will be no look-back at financial records when an application for Medicaid Extended Coverage is filed. The protection of assets also extends to the estate of the participating policyholder and there will be no recovery for properly paid Medicaid payments.

Dollar for Dollar Asset Protection:

The total dollar amount of insurance benefits paid on behalf of the participating policyholder establishes the amount of assets that will be protected when determining eligibility for Medicaid Extended Coverage. When the application is made for Medicaid Extended Coverage, the Department of Social Services will require financial documents to establish the assets and income of the applicant.

If an uncompensated transfer is made during the look-back period, the total cumulative amount transferred must first be subtracted from the amount of asset protection. Any remaining amount of asset protection can be used and will be disregarded in the Medicaid eligibility process.

If the uncompensated transfer made during the look-back should exceed the amount of asset protection, then a penalty period would be calculated based on the transferred amount in excess of the asset protection amount.

If a Partnership policyholder's estate at the time of death contains assets in excess of the asset protection amount, then the local Department of Social Services may seek recovery of those assets that exceed the protected amount but in an amount no greater than the cost of care provided by Medicaid.

Eligibility for Medicaid Extended Coverage is based on the amount of unprotected assets and income.

      Lesson 3 will provide more detailed information on this topic.