Michigan Long-Term Care Insurance Partnership Program

Michigan’s Long-term Care Insurance Partnership Program is a partnership program between Medicaid and private long-term care insurers designed to encourage individuals to purchase private long-term care insurance. Michigan long-term care partnership policies are tax qualified (a portion of premiums paid may be claimed as a tax deduction) under federal law; provide policyholders with inflation protection; and most importantly, provide dollar-for-dollar asset protection in the event the policyholder needs to apply for long-term care Medicaid assistance. For every dollar that a Michigan long-term care partnership policy pays out in benefits, a dollar of assets can be protected from Medicaid spend-down requirements.

The Partnership Program is a partnership between state government and private insurance companies to assist individuals in planning their long-term care needs. Insurance companies must follow state and federal guidelines, and agents must be licensed and trained to sell partnership policies. Insurance companies voluntarily agree to participate in the Partnership Program. Long-term care insurance that qualifies for the Partnership Program may protect the policyholder’s or certificate holder’s assets through a feature known as “Asset Disregard” under Michigan’s Medicaid program.