---
title: "Arizona Long-Term Care Insurance | Funding LTC Marketplace"
url: https://fundingltcmarketplace.com/states/arizona/long-term-care-insurance/
description: "Arizona's active Partnership policy can protect an amount of resources and estate value equal to qualifying policy benefits paid."
last_updated: 2026-10-20
author: George A. Mellendorf, CLTC, LTCP (Central States Insurance Services, Inc.)
publisher: Funding LTC Marketplace
note: Educational content; not legal, tax or financial advice. Markdown copy of the HTML page at the URL above.
---
Arizona · LTC Insurance

# Arizona Long-Term Care Insurance

Last updated 2026-10-20

Arizona insurance law defines its Long-Term Care Partnership Program as a qualified state partnership under Section 1917(b) of the Social Security Act. AHCCCS's current eligibility policy confirms the practical side of that: Arizona's Partnership program launched July 1, 2008, and the state remains an active participant.

Not every policy that pays long-term-care benefits automatically qualifies as a Partnership policy. Arizona's insurance commissioner — the state official responsible for insurance regulation and oversight — determines whether a specific policy meets the Partnership requirements, and AHCCCS accepts either a copy of the policy or a completed Request for Verification of Long-Term Care Partnership Insurance Policy form from the insurer as proof. A qualifying policy protects an amount of resources and estate value equal to the benefits it has actually paid.

## Does Arizona have a Long-Term Care Partnership program?

**Yes.** Arizona takes part in the Long-Term Care Partnership program created by the federal Deficit Reduction Act of 2005 (DRA). DRA Partnership states follow consumer-protection standards drawn from the National Association of Insurance Commissioners (NAIC) Long-Term Care Insurance Model Act and Model Regulation. A Partnership-qualified policy gives you **dollar-for-dollar asset protection**: for every dollar the policy pays in benefits, Arizona Medicaid can disregard a dollar of your assets when it decides eligibility, and the same amount is protected from estate recovery after death.

**How the protection works (illustrative):** if a Partnership policy pays $200,000 in benefits before you apply for Medicaid, Medicaid can disregard $200,000 of your assets on top of the state's regular asset limit, and that same amount is protected from Medicaid estate recovery later.

### What makes a policy Partnership-qualified

- It's a **tax-qualified** long-term care policy under Internal Revenue Code § 7702B.
- It meets the state's Partnership consumer-protection standards and is issued while you're a resident of a Partnership state (each state sets its own start date and residency rule).
- It carries the required **inflation protection** for your age when you buy: compound annual protection if you're under 61, some level of protection from 61 through 75, and optional protection at 76 or older.

### If you move to another state

Arizona appears on the New York State Partnership for Long-Term Care's reciprocity map as a Partnership state that honors reciprocity. In general, a Partnership policy bought in another reciprocal state keeps its dollar-for-dollar protection here, and a Arizona policy keeps it in other reciprocal states.

**The original four:** California, Connecticut, Indiana and New York started their Partnership programs before the Deficit Reduction Act of 2005. Their programs were designed separately from the NAIC-based DRA model, so their rules differ (for example, some offered Total Asset protection), and California doesn't take part in reciprocity. If you bought a policy in one of these states, confirm how it's treated with the Medicaid agency where you'll apply.

Not every insurer offers Partnership-qualified policies in every state. When you compare quotes, ask whether each policy is Partnership-qualified in Arizona.

## Sources and official resources

- [AHCCCS: Long Term Care Partnership Program (DE-800)](https://www.azahcccs.gov/Members/Downloads/ALTCS/DE-800.pdf)
- [AHCCCS: ALTCS coverage for long-term care needs](https://www.azahcccs.gov/Members/GetCovered/Categories/ALTCS.html)
- [New York State Partnership for Long-Term Care: State Partnership Programs and Reciprocity map](https://nyspltc.health.ny.gov/reciprocitymap.htm)
- [U.S. Code: 42 U.S.C. § 1396p (liens, estate recovery, transfers of assets, Partnership disregard)](https://www.law.cornell.edu/uscode/text/42/1396p)

Rules and figures change. Confirm current details with the agency before you act.

[← Back to the full Arizona guide](https://fundingltcmarketplace.com/states/arizona/)