--- title: "Illinois Long-Term Care Insurance | Funding LTC Marketplace" url: https://fundingltcmarketplace.com/states/illinois/long-term-care-insurance/ description: "Illinois regulates LTC insurance and runs an active Partnership program. It protects assets for Medicaid eligibility but doesn't end estate recovery." 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. --- Illinois · LTC Insurance # Illinois Long-Term Care Insurance Last updated 2026-10-20 The Illinois Department of Insurance (IDOI) regulates long-term-care insurance in the state. Producers who sell or solicit these policies need a Health line-of-authority license, an eight-hour Partnership certification course, and ongoing training to keep that certification current at renewal. Illinois's Partnership program is still open, and it offers eligibility asset protection for policyholders — though it's important to understand that Partnership protection covers Medicaid eligibility, not estate-recovery exposure, so the two shouldn't be confused. Policy filings in the state fall under 50 Illinois Administrative Code Part 2012, with section 2012.145 specifically governing Partnership policies. ## Does Illinois have a Long-Term Care Partnership program? **Yes.** Illinois 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, Illinois 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 Illinois law (215 ILCS 132/20) directs the state to follow the federal Deficit Reduction Act rules on reciprocity with other Partnership states. In general, that means a Partnership policy bought in another reciprocal state keeps its dollar-for-dollar protection in Illinois, and an Illinois policy keeps it in other reciprocal states. Confirm with the Illinois Department of Healthcare and Family Services before you rely on it. **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 Illinois. ## Sources and official resources - [Illinois Department of Insurance: Long-Term Care Insurance](https://idoi.illinois.gov/consumers/consumerinsurance/lifeannuities/long-term-care.html) - [Illinois Compiled Statutes: 215 ILCS 132, Illinois Long-Term Care Partnership Program Act](https://ilga.gov/Legislation/ILCS/Articles?ActID=2912&ChapterID=22) - [Illinois Administrative Code: Section 2012.145, Long-Term Care Insurance Partnership Program](https://ilga.gov/commission/jcar/admincode/050/050020120001450R.html) - [Illinois HFS: Long Term Care](https://hfs.illinois.gov/medicalclients/ltc.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 Illinois guide](https://fundingltcmarketplace.com/states/illinois/)