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AGED, BLIND, AND DISABLED MEDICAID 804-1 Long Term Care Partnership Supersedes: MA 903-2 (07/01/09) Reference: 42 U.S.C. 1396p; ARM 37.82.101, 6.6.3101-.3115, .3117-.2120; P.L. 109-171 Overview: Resources equal to the Long Term Care (LTC) Partnership policy benefits may be protected when an institutionalized/waiver client or spouse purchases a Qualified LTC Partnership policy or converts an existing LTC policy to a Qualified LTC Partnership policy on or after July 1, 2009. Once the LTC Partnership policy lifetime limits have been fully exhausted, assets equal to the insurance benefits paid for the client or spouse are protected/ disregarded. An amount of resources equal to the total LTC Partnership insurance benefits paid are protected/disregarded when determining institutional/waiver Medicaid eligibility. These resources are also protected from Medicaid estate recovery. When both spouses are covered by a joint LTC Partnership policy, the couple receives full asset protection as well as estate recovery protection, regardless of which spouse actually received the insurance benefits. Uncompensated asset transfer provisions apply to protected assets, and it can’t be assumed that transfer of protected assets was done for a reason other than qualifying for Medicaid. For example, transferring a protected asset could result in loss of countable income, which directly affects Medicaid eligibility. APPLICATION OF OTHER MEDICAID PROVISIONS: All other financial and nonfinancial eligibility criteria and Medicaid policy applies when determining institutionalized/waiver eligibility for an individual/couple who have a Qualifying LTC Partnership policy. Qualifying LTC Partnership resource protections do not apply when determining Medicare Savings Program or non-institutional/waiver Medicaid eligibility. QUALIFIED LONG TERM CARE PARTNERSHIP POLICY: The Montana Insurance Commissioner must certify in writing that a LTC policy meets the Qualified LTC Partnership policy definition. The required certification is often attached to the policy. The certification verifies the policy meets the following: 1. The insured was a resident of a Partnership State when the policy first became effective; 2. Policy meets the IRS definition (IRS code of 1986) of ‘Qualified LTC Insurance Policy’; 3. The policy was issued no earlier than July 1, 2009 (date of Montana’s Long Term Care Partnership Medicaid State Plan Amendment); and