Under the partnership policy, which of the following does not happen if long-term care needs arise?

The selected answer emphasizes that under a partnership policy, individuals do not gain immediate access to Medicaid benefits regardless of the policy. This is critical to understanding the partnership program, which was designed to encourage the purchase of long-term care insurance by allowing policyholders to qualify for Medicaid after their insurance benefits have been exhausted. The partnership policy enables insured individuals to protect a certain amount of their assets when they eventually apply for Medicaid, rather than granting them immediate access to Medicaid benefits independently of their policy conditions.

In contrast, the other options reflect situations that are not characteristic of partnership policies. The increased out-of-pocket expenses for the insured could occur if long-term care needs arise and the partnership benefits are insufficent or already utilized. The partial coverage provided by the partnership policy indicates that these policies often do not cover all aspects of long-term care, necessitating out-of-pocket payments. Lastly, significant premium decreases due to qualification is not a standard outcome of entering a partnership policy—typically, premiums are influenced by various factors but do not necessarily decrease as a direct result of qualification alone. Overall, recognizing the functioning of partnership policies clarifies why immediate access to Medicaid benefits is not provided as a standard outcome.