What is the primary difference between Long Term Care Partnership Plans and Non-Partnership Plans?

• A. Premium Cost
• B. Asset Protection
• C. Eligibility Age
• D. Benefit Maximum

Answer: (B)

Asset protection is the key difference. Long-Term Care Partnership Plans are designed to help you preserve some of your own assets when seeking Medicaid, by tying private LTC coverage to a protection mechanism. Specifically, the assets you’ve protected can be exempted from Medicaid’s spend-down calculations to the extent benefits have been paid out under the policy. In other words, the value of benefits paid effectively reduces the amount of your assets that would otherwise count toward Medicaid eligibility. Non-Partnership Plans don’t offer this asset protection, so there’s no special exclusion or protection of assets when applying for Medicaid. Premium cost, eligibility age, and benefit maximums can vary by policy, but they don’t define the core distinction—asset protection is what sets Partnership plans apart.