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Title 8: Medicaid Page 87 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources General Non-MAGI-Related Resource Policies Revised September 13, 2024 Long-Term Care Asset Preservation The asset adjustment is exempt from estate recovery for the member and the member’s spouse. Comment: The Long-Term Care (LTC) Partnership program is a cooperative effort between private insurers and state government to encourage people to plan ahead and provide for their long-term health needs. An LTC partnership policy:  Must meet the minimum standards established for long-term care insurance policies and certificates as established by the Iowa Insurance Division.  Has identifying information included in the policy or attached to the policy to indicate that it is a qualifying long-term insurance policy. The insurer provides the beneficiary a quarterly report which includes the amount paid in the last quarter and total amount paid on behalf of the insured. In addition, the insurer is required to report data on each partnership policy sold under the Long-Term Care Partnership program to a national database. The national database then reports this information to each state’s insurance department. The information reported includes:  Notice of when benefits are paid under the policy,  The amount of those benefits, and  Notice of termination of the policy. Iowa participates in a national reciprocity agreement with other states. If a person moves to Iowa and has a partnership policy that was purchased in another state, the policy can carry over to Iowa for the person to be eligible for an asset adjustment if the person applies for Medicaid in Iowa. Procedure: The amount of the disregard is equal to the amount of the insurance benefits paid to or on the behalf of the person. The insurance benefits do not have to be fully exhausted before the disregard can be applied. If the person is approved for Medicaid and the policy continues to pay benefits, the asset adjustment can continue to increase. Subtract the total amount the policy has paid on the person’s behalf from the person’s total resources. Compare the remaining resources to the resource limit to determine Medicaid resource eligibility. If the person’s remaining resources exceed the resource limit, issue a Notice of Decision denying or canceling Medicaid.