In this case, the Partnership and Non-Partnership spouses' resources (accumulated assets) are NOT protected for purposes of determining Medicaid eligibility for the non-Partnership spouse (even if the non-applying spouse has a Partnership policy). The couple's combined countable resources will have to be spent down to the Medicaid resource level for a couple in order for the non-Partnership spouse to receive Medicaid. They can retain resources (accumulated assets) up to a maximum of $19,200 (effective 4/1/08 ). Burial funds up to $1,500 for each spouse are also disregarded (or any amount placed in a non-refundable, irrevocable pre-need funeral agreement).

      If the insured spouse at a future time satisfies the requirements of his or her Partnership policy, then he or she may be eligible for Medicaid Extended Coverage. See scenario 6 for total asset protection policies, and scenario 8 for Dollar for Dollar Asset protection policies.