In most states, the long term care partnership insurance policy does not have to be exhausted before asset protection is allowed. Long term care partnership policies are similar to traditional long term care insurance policies. The difference is that they must include special consumer protection features including inflation protection.
Without a long term care partnership policy, you’d have to spend your assets down to the state-required minimums before Medicaid will pay for your care. With a long term care partnership policy, the state will allow you to keep the minimum amounts plus an amount equal to whatever your long term care partnership policy paid in benefits.
Not only can your assets be protected from Medicaid spend-down while you are alive, your assets can even be protected from estate recovery after you pass away.