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Asset Protection through Long Term Care Partnership

Alabama Long-Term Care Insurance Partnership Program

The Alabama Long-Term Care Insurance Partnership Program is designed to encourage residents of Alabama to purchase long-term care insurance by offering a plan that will allow Medicaid to disregard some or all of your assets for Medicaid eligibility and estate recovery purposes.

The Alabama Long-Term Care Insurance Partnership Program provides asset protection on a dollar-for-dollar basis. For every dollar that the insurance company pays out in benefits, is a dollar of your personal assets that will be protected if you need to apply for Medicaid.

For a policy to qualify for an Alabama Long-Term Care Insurance Partnership Policy is must follow these requirements:

  • Be issued after March 1, 2009
  • Cover an individual who was an Alabama resident when coverage first becomes effective under the policy
  • Be a tax-qualified policy
  • Meet stringent consumer protection standards
  • Meet the following inflation requirements:
    • Age 60 and younger: Compound inflation required
    • Age 61-75: Some form of inflation is required
    • Age 76+: No inflation required