What is the purpose of the Long Term Care Partnership Program (LTCP)?

The Long Term Care Partnership Program (LTCP) is designed to encourage individuals to purchase long-term care insurance by providing asset protection and allowing them to retain more of their assets if they later need to apply for Medicaid. Specifically, the program creates a partnership between private long-term care insurance and Medicaid, which means that for every dollar of long-term care insurance benefits an individual collects, they can protect an equivalent amount of their assets from the Medicaid spend-down requirement.

This system incentivizes people to invest in long-term care insurance, ensuring that they have financial resources available for their long-term care needs while simultaneously providing a safety net through Medicaid when those resources are exhausted. By protecting these assets, the LTCP helps mitigate the financial burden on the state’s Medicaid program and promotes planning for potential long-term care needs.

Other options, while they may reference aspects of long-term care or Medicaid, do not accurately describe the program's primary focus on asset protection.