What is the implication when the proceeds of a partnership-qualified long-term care policy are exhausted?

When the proceeds of a partnership-qualified long-term care policy are exhausted, the insured has the option to apply for Medicaid assistance. Partnership-qualified policies are designed to encourage individuals to purchase private long-term care insurance by allowing for certain benefits when applying for Medicaid.

Specifically, if a person has a partnership policy and they exhaust their policy benefits, the state's Medicaid program will allow them to apply for assistance without the usual asset spend-down requirements that would typically apply to individuals entering Medicaid. This means that the insured can seek governmental support for long-term care without losing all their personal savings or assets that would otherwise be necessary.

This structure is intended to provide some level of protection for policyholders after their private insurance benefits have been completely utilized, thereby facilitating access to necessary long-term care services through Medicaid.