Partnership Policies (Partnership Program)

The partnership program for Long-Term Care Insurance offers extra protections to participating policyholders. 

This program started in the 1980s in four states: New York, California, Connecticut, and Indiana. Each state implemented its own version of a partnership program. 

Policies that met partnership program requirements were considered partnership policies. These policies allowed policyholders to protect their assets from Medicaid spend-down if they ever used all the benefits within their Long-Term Care Insurance policy and needed coverage from Medicaid. 

President George W. Bush recognized the value of this program. In 2006, he signed the Deficit Reduction Act, which expanded the program nationwide. It allowed the remaining states to establish their own partnership programs. 

This act also added new rules to limit abuse of Medicaid payments for long-term care. It also added additional dollar-for-dollar asset protection to partnership policies. 

Dollar-for-dollar asset protection meant that policyholders could shelter an amount equal to the benefits paid by their policy if they ever needed to protect their estate against Medicaid spend-downs.