Under the DRA state partnership LTC, the asset spend-down exemption equals what?

Under the DRA state partnership LTC, the asset spend-down exemption equals what?

• A. the total lifetime benefits paid through the LTC partnership policy
• B. total premiums paid
• C. the cash surrender value
• D. the face value of the policy

Answer: (A)

In the DRA state partnership LTC programs, the asset spend-down exemption is equal to the total lifetime benefits paid through the LTC partnership policy. This means the dollar value of benefits actually paid for long-term care can be disregarded when determining Medicaid asset eligibility. Premiums paid, cash surrender value, and the policy’s face value do not set this exemption—the protection comes from the benefits that have been paid out.

In the DRA state partnership LTC programs, the asset spend-down exemption is equal to the total lifetime benefits paid through the LTC partnership policy. This means the dollar value of benefits actually paid for long-term care can be disregarded when determining Medicaid asset eligibility. Premiums paid, cash surrender value, and the policy’s face value do not set this exemption—the protection comes from the benefits that have been paid out.