South Dakota Long-Term Care Partnership Program

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

This public-private partnership creates an innovative program offering individuals quality, affordable long-term care insurance and a way to receive needed care without depleting all their assets.

Benefits of the Partnership Program

• Partnership policies are tax-qualified plans under federal law and provide inflation protection benefits for purchasers.

• The South Dakota Long-Term Care Partnership Program provides an alternative to spending down or transferring assets by forming a partnership between Medicaid and private long-term care insurers.
• Once private insurance benefits are used, special Medicaid eligibility rules are applied if additional coverage is necessary.