Long-term-care insurance in Texas falls under 28 Texas Administrative Code, Chapter 3, Subchapter Y, which governs individual and group LTC insurance and related products. The Texas Long-Term Care Partnership Program itself is administered by HHSC under 1 Texas Administrative Code Section 358.355 (1 TAC section 358.355).
Under that Partnership Program, the amount of resources shielded from Medicaid eligibility calculations equals — dollar for dollar — the benefits already paid out by a qualifying Partnership policy. That's a direct, one-to-one resource disregard, though it doesn't erase every other Medicaid financial rule an applicant still has to satisfy (1 TAC section 358.355).
Texas figures
- Free-look period
- 30 days
Does Texas have a Long-Term Care Partnership program?
Yes. Texas 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, Texas 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
Texas 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 Texas 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 Texas.
Sources and official resources
- Texas Department of Insurance: Long-Term Care
- Texas Department of Insurance: Long-Term Care Resources (Partnership)
- Texas HHSC MEPD Handbook: Appendix XII, Nursing Facility and HCBS Waiver Information
- 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.