The Michigan Department of Insurance and Financial Services (DIFS) oversees long-term-care insurance sold in the state, including reviewing policy forms and evaluating requests for premium-rate increases. DIFS also keeps a public list of companies authorized to sell LTC insurance in Michigan, which is worth checking before purchasing a policy.
Michigan participates in the state Long-Term Care Partnership Program, which gives qualifying policyholders a dollar-for-dollar asset disregard against both Medicaid eligibility limits and estate recovery — every dollar a Partnership policy pays out protects an equivalent dollar of the policyholder's assets.
Does Michigan have a Long-Term Care Partnership program?
Yes. Michigan 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, Michigan 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
Michigan's Partnership program took effect February 22, 2016. Michigan law (MCL 400.112c) directs the state to pursue reciprocal agreements with other Partnership states, but the law doesn't list which states Michigan has agreements with. Before you rely on Partnership protection after a move into or out of Michigan, confirm with the Michigan Department of Health and Human Services and with the Medicaid agency in the other state.
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 Michigan.
Sources and official resources
- Michigan DIFS: Authorized Long-Term Care Companies
- Michigan DIFS: Bulletin 2016-01-INS (Long-Term Care Partnership)
- Michigan Compiled Laws: MCL 400.112c (Partnership asset disregard and reciprocal agreements)
- MDHHS: Nursing Facility Eligibility
- 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.