---
title: "Kentucky Long-Term Care Insurance | Funding LTC Marketplace"
url: https://fundingltcmarketplace.com/states/kentucky/long-term-care-insurance/
description: "Kentucky’s Department of Insurance regulates LTC coverage and its publicly posted 2024 guide describes an active Partnership asset-disregard program."
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.
---
Kentucky · LTC Insurance

# Kentucky Long-Term Care Insurance

Last updated 2026-10-20

Kentucky's Department of Insurance regulates long-term-care coverage in the state and reviews LTC policy form filings before they're sold to consumers. Its regulations identify 806 KAR 17:083 as the rule governing Kentucky's long-term-care partnership insurance program, alongside separate long-term-care insurance policy standards.

Kentucky's publicly posted 2024 consumer guide describes an active Partnership asset-disregard program — meaning benefits paid out under a qualifying Partnership policy can translate into protected assets if the policyholder later needs Medicaid. Buying insurance isn't the same as qualifying for Medicaid, though, so a purchaser still needs to read the actual policy for its benefit triggers, exclusions, inflation terms, premium history, and nonforfeiture provisions.

The Department of Insurance's guide functions as a consumer resource, while the insurer and the Department itself determine whether any specific filing and policy actually meet the applicable Partnership requirements.

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

**Yes.** Kentucky 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, Kentucky 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

Kentucky 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 Kentucky 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 Kentucky.

## Sources and official resources

- [Kentucky Department of Insurance: Long-Term Care Insurance Partnership Program FAQ](https://insurance.ky.gov/ppc/Documents/KYDOI%20LTCPartFAQ102413.pdf)
- [Kentucky Medicaid: Nursing Facility Services](https://www.chfs.ky.gov/agencies/dms/provider/Pages/nursingfacilities.aspx)
- [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 Kentucky guide](https://fundingltcmarketplace.com/states/kentucky/)