California Partnership-Approved LTC Insurance Policy or Certificate

Individuals with California Partnership-approved LTC Insurance policies or certificates are eligible to a property exemption for MC. The amount paid out by approved LTC insurance policies or certificates is used to reduce the countable real and personal property of the MC individual.

ExampleExampleA married couple has $140,000 in countable property. The husband has a Partnership-approved LTC insurance policy and provides the Service Summary which shows that $145,000 has been paid out under the policy. After applying the LTC insurance exemption, the applicants’ total non-exempt property is $0. 

To qualify, individuals must provide a “Service Summary” from one of the approved insurance companies. The insurance companies that are authorized to sell state-certified LTC insurance policies and certificates are limited to:

  • Bankers Life and Casualty
  • John Hancock Mutual Life
  • CNA Insurance
  • Met Life
  • Transamerica Occidental Life Insurance
  • Genworth Financial (formerly GE Financial)
  • New York Life Insurance
  • CalPERS Long-Term Care Program

Note: CNA and Transamerica are no longer offering a Partnership policy, however, if a client previously purchased one from either of these two companies, they still retain the same rights and benefits as outlined in their policy.

Service Summaries

The Service Summary verifies that the insurance policy or certificate is Partnership-approved and indicates the amount of benefits paid under the policy or certificate. The Service Summary must be on company letterhead with the company seal and list the insured’s name, date of birth, social security number, address, policy number, policy issuance date and the total amount of qualifying benefits that have been paid to date.

Each Partnership-approved LTC insurance policy or certificate holder will receive a “Service Summary” report from the insurance company, at least quarterly when payments have been paid in that quarter. The report will include the cumulative amount of:

  • Benefits paid prior to the current reporting period
  • Benefits paid during the current reporting period
  • Benefits paid to date
  • Remaining unpaid benefits

The benefits paid to date must be used in determining the MC property exemption.

Duration of Property Exemption

The LTC insurance exemption applies as long as the person is alive and is applied regardless of whether he/she is in LTC. A new Service Summary is required any time property is re-evaluated, including at Redetermination and when additional property is attained.

Related Topics

Long Term Care (LTC)

Property Rules

Transfers of Property

Property Determinations for LTC Individuals