Long-term-care insurance sold in Maryland answers to the Insurance Commissioner, whose regulations apply to LTC products issued or delivered in the state. Under those rules, a qualifying policy, contract, certificate, or rider must be designed to cover at least 24 consecutive months of necessary or appropriate long-term-care services, subject to whatever exclusions and conditions the regulation lays out.
Maryland also runs an active Partnership Program. Carriers offering Partnership policies to Maryland residents must be certified, follow the state's other LTC rules and producer-training requirements, and make the required disclosures — and they can't solicit a Partnership policy at all unless it's been certified. That's solid evidence the regulatory framework is operating, but any individual carrier can pull a product from the market, so it's worth confirming actual current availability and approval status with the insurer and the state before applying.
Maryland figures
- Minimum Partnership coverage period
- 24 consecutive months
Does Maryland have a Long-Term Care Partnership program?
Yes. Maryland 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, Maryland 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
Maryland 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 Maryland 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 Maryland.
Sources and official resources
- Maryland Insurance Administration: Long-Term Care Insurance
- Maryland Insurance Administration: Consumer Guide to Long-Term Care Insurance
- Maryland Department of Health: Nursing Facility Residents, Recipients and Families
- New York State Partnership for Long-Term Care: State Partnership Programs and Reciprocity map
- U.S. Code: 42 U.S.C. § 1396p (liens, estate recovery, transfers of assets, Partnership disregard)
Rules and figures change. Confirm current details with the agency before you act.