y State Partnership Plans « Long Term Care Advisors

Partnership Policies

Thanks to the Deficit Reduction Act of 2005, dozens of states have now enacted what are called “DRA Partnership” long term care plans. This refers to a partnership between private industry and public funding of long term care, the latter in the form of Medicaid.1 Our government has incentivized the purchase of LTC insurance by synchronizing these programs in a very particular way.

Once an individual purchases a DRA Partnership policy and uses some or all of the policy benefits, the amount of the policy benefits used will be disregarded for purposes of calculating eligibility for Medicaid. This means that they are able to keep their assets up to the amount of the policy benefits that were paid under their policy or coverage. The assets are also disregarded during Medicaid estate recovery.

For every $1 in LTC claims paid from a Partnership-Qualified (“PQ”) plan, $1 is disregarded from Medicaid’s asset eligibility rules at application, and the same $1 is also disregarded during Medicaid estate recovery. Special care should be taken when designing a PQ plan. Its total lifetime account value, relative to one’s underlying estate, should be considered. Inflation should also be considered.

Special agent training is required to sell PQ plans.

Please note that the states of CA, CT, IN, and NY each instituted Partnership programs which pre-dated the DRA; these four “grandfathered” states are entirely unique in their features.

What States Have Approved Long-Term Care Partnership Insurance For Sale

Effective Date — The date that the U.S. Department of Health & Human Services approves the State Plan Amendment. Original Partnership indicates one of the four original Partnership States.

Reciprocity — Whether or not the State will honor partnership policies from other DRA partnership states when it comes to allowing asset disregard when filing for Medicaid. All DRA states plus New York, Indiana and Connecticut have reciprocity. California does not.

State Effective Date Policy Reciprocity
Alabama 03/01/2009 Yes
Alaska Not Filed
Arizona 07/01/2008 Yes
Arkansas 07/01/2008 Yes
California Original Partnership No
Colorado 01/01/2008 Yes
Connecticut Original Partnership Yes
Delaware 11/01/2011 Yes
District of Columbia Not Filed
Florida 01/01/2007 Yes
Georgia 01/01/2007 Yes
Hawaii Pending
Idaho 11/01/2006 Yes
Illinois Pending
Indiana Original Partnership Yes
Iowa 01/01/2010 Yes
Kansas 04/01/2007 Yes
Kentucky 06/16/2008 Yes
Louisiana 10/01/2009 Yes
Maine 07/01/2009 Yes
Maryland 01/01/2009 Yes
Massachusetts Proposed
Michigan Work stopped
Minnesota 07/01/2006 Yes
Mississippi Not Filed
Missouri 08/01/2008 Yes
Montana 07/01/2009 Yes
Nebraska 07/01/2006 Yes
Nevada 01/01/2007 Yes
New Hampshire 02/16/2010 Yes
New Jersey 07/01/2008 Yes
New Mexico Not Filed
New York Original Partnership Yes
North Carolina 03/07/2011 Yes
North Dakota 01/01/2007 Yes
Ohio 09/10/2007 Yes
Oklahoma 07/01/2008 Yes
Oregon 01/01/2008 Yes
Pennsylvania 09/15/2007 Yes
Rhode Island 07/01/2008 Yes
South Carolina 01/01/2009 Yes
South Dakota 07/01/2007 Yes
Tennessee 10/01/2008 Yes
Texas 03/01/2008 Yes
Utah Not Filed
Vermont Not Filed
Virginia 09/01/2007 Yes
Washington 01/01/2012 Yes
West Virginia 17/01/2010 Yes
Wisconsin 01/01/2009 Yes
Wyoming 06/29/2009 Yes

Long Term Care Advisors
National Offices
2107 Troop Drive
Sartell, 56377

(888) 611-2200 Phone
(320) 257-2070 Fax
(320) 654-6100 Local