Page 318

Medical Services Policy Manual, Section H

H-500 Long Term Care Insurance Partnership Program

H 510 Resource Disregard

H-500 Long Term Care Insurance Partnership Program MS Manual 01/01/14 The Deficit Reduction Act of 2005, Pub. L. 109-171, Section 6021 allows for the expansion of a Qualified State Long Term Care (LTC) Partnership Program. This permits States when determining Medicaid eligibility to disregard as a resource an amount up to the total amount of benefits paid out of a LTC Insurance Partnership policy. The Arkansas General Assembly passed Act 99 on February 13, 2007 to establish the Arkansas Long Term Care Partnership Program. The Qualified State LTC Partnership Program encourages individuals to accept personal responsibility for their future long-term care needs by purchasing insurance and reduces the incentive to transfer or hide resources that can be protected legally. It will help individuals better plan for long term care needs they may have in the future.  NOTE: Purchasing orowning a LTCPartnership policy does not guarantee Medicaid eligibility. Other eligibility factors must be met also. H-510 Resource Disregard MS Manual 01/01/14 A resource disregard in an amount up to the amount of benefits paid out by a Qualified Long Term Care Insurance Partnership policy will be allowed when determining eligibility for Medicaid. This is a “dollar for dollar” calculation for resource protection. The benefits will be disregarded in determining an individual’s Medicaid eligibility for Facility Care as well as Home and Community Based Services. EXAMPLE: An individual purchased a qualified policy with a benefit of $100,000. Application is made for Medicaid and the policy has paid out $90,000 in benefits. The policyholder’s resources can be protected up to $90,000. Only certified “partnershipqualified” LTC insurance policies provide this resource protection. The resource disregard cannot be allowed for a non-qualified LTC insurance policy.