North Dakota Long Term Care Partnership Program

North Dakota’s Long-term Care 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. North Dakota 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 North Dakota long-term care partnership policy pays out in benefits, a dollar of assets can be protected from Medicaid spend-down requirements.

Under the North Dakota Long-Term Care Partnership Program, individuals who purchase long-term care insurance policies that meet certain requirements specified by the Deficit Reduction Act of 2005 (Partnership Policies) can apply for Medicaid under special rules for determining financial eligibility and Medicaid estate recovery. These special rules generally allow the individual to protect assets equal to the insurance benefits received from a Partnership Policy. These assets will not be taken into account when determining financial eligibility for Medicaid and will not subsequently be subject to Medicaid estate recovery.