Long-Term Care Insurance Partnership Program

The Wisconsin Long-Term Care Insurance Partnership (LTCIP) program uses qualified private long-term care insurance coverage as a funding option to assist individuals in paying for their potential long-term care expenses. The program is intended to encourage the purchase of private long-term care insurance by allowing policyholders to protect some or all of their financial assets should they apply for Medical Assistance.

Individuals who purchase qualified Long-Term Care Insurance Partnership policies receive initial long-term care coverage from their private insurance carrier. If individuals subsequently seek Medical Assistance coverage for their long-term care needs, they may be allowed to exclude a certain amount of personal assets and still be eligible for Medical Assistance. This amount will be equal to the amount of benefits received under the qualified Long-Term Care Insurance Partnership policy. LTCIP is a dollar-for-dollar arrangement meaning that the personal assets protected will be equal to the amount of benefits paid by the qualified private insurance policy.

LTCIP gives individuals another choice to consider as a part of their retirement and financial planning. Individuals are encouraged to discuss the LTCIP with their financial services professional or trusted person with sufficient knowledge of the program and the consumer's financial goals before making a decision.

Long-term care insurance policies that qualify for Long-Term Care Partnership Program status are intended to allow you to protect some or all of your assets and still qualify for Medicaid if your long-term care needs extend beyond the period covered by your qualified long-term care partnership insurance policy.

Some insurance companies with long-term care policies that qualify for partnership program status may offer existing long-term care policyholders the option of exchanging their existing long-term care policy for a qualified long-term care partnership policy. You are not required to accept the exchange option offer, nor are long-term care insurers required to offer an exchange option.

Long-term care partnership policies must include inflation protection coverage that meets specific minimum standards based on your age at the time you apply for a qualified long-term care partnership policy.

If you are under age 61the policy must provide compound annual inflation protection.
If you are age 61 but less than age 76the policy must provide 3% annual simple inflation protection or provide compound annual inflation protection.
If you are at least age 76the policy may provide the inflation protection identified above but is not required to do so.

All long-term care partnership policies are intended to be federally tax-qualified long-term care insurance policies as defined by federal Internal Revenue Code.

Purchasing a qualified long-term care partnership policy does not guarantee you benefits, coverage eligibility, or asset protection under the Medicaid program. For example:

  • States may withdraw from the partnership program.
  • If you exhaust your long-term care insurance benefits under a policy that qualified for partnership program status, you may find that the long-term care services you are receiving are not covered services under Wisconsin's Medicaid program, i.e., assisted living coverage.
  • If you exhaust your long-term care insurance benefits under a policy that qualified for partnership program status, you may find that the facility in which you are receiving care does not accept Medicaid.
  • If you move to another state, you may find that that state does not participate in the long-term care partnership program and that it does not recognize your long-term care policy's partnership program status in reference to qualifying for Medicaid.