What is the Medicaid Partnership Agreement?

The main goal of the Medicaid Long Term Care Partnership is to help the middle class purchase long term care insurance for their nursing home care. Therefore, the government’s MedicaidThe Deficit Reduction Act of 2005 radically changed the Medicaid playing field. The most important change was an extension of the look-back period for asset transfers to establish Medicaid's eligibility for nursing home coverage from 3 to 5 years and changes the start of the penalty from the date of the transfer to the date of Medicaid eligibility. Budget for long-term care should decrease. If you purchase long term care insurance you will be able to preserve some of your assets.

Medicaid has a “means test” for qualification for long term care assistance. If you have over $2,500 in Maryland, you will not qualify for Medicaid. Consequently, you need to spend down your assets before you qualify for Medicaid. 

The four states – California, Connecticut, Indiana, and New York – used the "dollar for dollar" asset protection model as basis for the new policies of the Deficit Reduction of Act i.e. changes in the Medicaid laws. The dollar for dollar feature allows you to retain an amount of assets equal to the amount of the insurance benefit coverage. Therefore, those assets are protected from the Medicaid eligibility determination process.

Maryland, hopefully, will be enacting the Partnership program soon.

You do not have to totally impoverished to become eligible for Medicaid, as discussed in our previous Blogs such as Medicaid Myths of Gifting.

Also, in a previous our Blogs, the VA has funds, VA Funds – Pension and Aid & Attendance, , for Veterans to pay for home care and assisted living care,

Accredited VA Attorney David Wingate has written a FREE HANDBOOK on VA Benefits , if you desire a copy please visit the Senior Life Care Planning's website or email at info@seniorlcp.com, or call the Frederick Office at 301 663 9230.