Language expanding long term care partnership programs was included in legislation passed by the House in a close vote before it recessed.
In long term care partnerships, Medicaid becomes the payer for an individual's LTC expenses after the benefits of the LTC policy have been exhausted. The partnerships also allow the policyholder to keep personal assets equal to the benefits paid by the policy, rather than being forced to "spend down" assets to become Medicaid eligible.
Currently, partnership programs exist only in California, Connecticut, Indiana and New York. Other states would be able to establish their own programs under the legislation, known as the H.R. 4241, or the Deficit Reduction Act of 2005.
