The “Medicaid Asset Protection” Secret of a Partnership LTC Plan.
My Mom Got to Keep Her Life Savings AND Get the Care She Needed.
My mom had a “Partnership Qualified” Long-Term Care policy. She used its benefits for several years, with the policy paying out $200,000 before the benefits were exhausted. When she later needed to go on Medicaid to continue her care, this Partnership status became a miracle. The state allowed her to keep $200,000 of her own assets—an amount equal to what the policy had paid—and still qualify for Medicaid. It was a secret feature that protected her life savings from the Medicaid “spend-down,” allowing her to pass on a legacy to her kids.
How a Partnership Plan Lets You Keep Your House and Savings, Even if You End Up on Medicaid.
The Government’s Reward for Planning Ahead.
A Partnership LTC plan is a deal with your state government. The deal is: if you take the personal responsibility to buy a qualifying policy, the state will reward you. If you ever exhaust your policy’s benefits and need to turn to Medicaid, the state will disregard a portion of your assets when determining your eligibility. This means you won’t have to sell your house or spend down your entire life savings to get the help you need. It’s a powerful incentive that protects your financial dignity.
“Dollar-for-Dollar” Asset Protection: The Superpower of a Partnership Policy.
The Simple Math That Saved Our Family’s Nest Egg.
The “dollar-for-dollar” protection of a Partnership plan is its superpower. It’s simple: for every single dollar your LTC policy pays out in benefits, you are allowed to keep one dollar of your own assets above the normal Medicaid limit. So if your policy pays $300,000 for your care, you can keep an extra $300,000 of your own money and still qualify for Medicaid assistance. It creates a protected asset shield that is equal to the hard work your policy did for you.
Why Would Anyone Buy a Non-Partnership Plan When This Exists?
Answering This Question Can Save Your Entire Estate.
In states where Partnership plans are available, buying a non-qualified policy is a massive, unforced error. You might save a few pennies on the premium, but you are forfeiting a state-guaranteed benefit that could be worth hundreds of thousands of dollars to your family. A Partnership plan provides not just long-term care benefits, but also “Medicaid insurance.” It protects you from the costs of care and then protects your remaining assets from the costs of government assistance. It’s a two-for-one protection you can’t afford to ignore.
A Tale of Two Retirees: One Had a Partnership Plan, One Didn’t. The Difference Was $500,000.
Same Health, Same Savings, Catastrophically Different Outcomes.
My aunt and her neighbor both had $500,000 in savings and needed long-term care. The neighbor’s LTC policy paid its benefit and ran out. To get Medicaid, she had to spend her entire $500,000 nest egg down to just $2,000. My aunt had a Partnership plan. Her policy also ran out. But because it was a Partnership plan, she was allowed to keep her entire $500,000 and qualify for Medicaid. One family was left with nothing. The other inherited a legacy. The type of policy was the only difference.
How to Ensure Your LTC Policy is “Partnership Qualified” in Your State.
Look for the Gold Seal of Approval.
Not all LTC policies are Partnership plans. To qualify, the policy must meet specific consumer protection requirements set by your state, such as inflation protection. When you are reviewing a policy, you must ask the agent to show you, in writing, that the policy is “Partnership Qualified” in your state. It will often be clearly disclosed in the policy documents. Don’t just take an agent’s word for it; verify that you are buying the specific type of policy that unlocks this incredible asset protection feature.
This is the Government’s Way of Incentivizing You to Buy LTC Insurance.
A Powerful Public-Private Partnership.
State governments know that Medicaid is buckling under the weight of long-term care costs. The Partnership program is their brilliant solution. It’s a public-private partnership designed to incentivize people to take personal responsibility for their future care. The government is essentially saying, “If you meet us halfway by buying a good, private policy, we will meet you the rest of the way by protecting your assets if you ever need our help.” It’s a win for the state and a massive win for the consumer.
Don’t Just Protect Yourself from LTC Costs. Protect Yourself from Medicaid Spend-Down.
The Two-Headed Dragon of Retirement Risk.
The cost of long-term care is the first head of the dragon that attacks your retirement savings. But the second, often more devastating head, is the Medicaid “spend-down.” This is the requirement that you impoverish yourself to qualify for government aid. A Partnership LTC policy is the only tool that can slay both heads of the dragon. It pays for your care, protecting you from the initial costs, and then it protects your remaining assets from the spend-down rules.
The Peace of Mind of Knowing Your Spouse Won’t Be Left Penniless.
The Ultimate Spousal Protection Plan.
The Medicaid spend-down rules can be particularly cruel to a healthy surviving spouse, often forcing them to spend down the couple’s joint assets to get care for their sick partner. A Partnership LTC policy protects the healthy spouse. By creating a protected asset shield, it ensures that the healthy spouse can keep the house, the car, and a significant portion of their savings, allowing them to live with financial dignity while their partner receives the care they need through Medicaid.
The Single Biggest Advantage a Partnership-Qualified Policy Gives You.
It Preserves Your Legacy.
The single biggest advantage of a Partnership policy is that it preserves your choices and your legacy. It ensures that a lifetime of hard work and careful saving isn’t completely wiped out by a long illness. It gives you the profound peace of mind of knowing that you can get the care you need without it costing your children their inheritance. It is the only financial tool that allows you to simultaneously plan for your own care and for the financial well-being of the next generation.