Medicaid is the primary source of long-term care expenses for people with low incomes or reduced assets from health care spending. The Long-Term Care Insurance Partnership model, developed in the 1980s, encourages middle-income people to buy private long-term care insurance, which helps delay or avoid the need for Medicaid.
The insured are subject to special Medicaid eligibility rules that allow a specific amount of their assets to be disregarded when benefits are assessed. This issue brief discusses the eligibility rules that states must consider when implementing a partnership program, many of which came into effect with the Deficit Reduction Act of 2005.
The author also discusses whether an insured person could be eligible for Medicaid before exhausting their insurance benefits and whether there are any limits placed on the types of paid-for services. The policies outlined in this brief could influence how long-term care planning develops across states.