State RegulationsCO specificDifficulty 3/5
A Colorado client exhausts the benefits of her qualifying long-term care partnership policy and later applies for Medicaid. What protection does the partnership feature provide at that point?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Colorado long-term care partnership policies (C.R.S. §§ 10-19-101 to 10-19-115; Colorado Insurance Regulation 4-4-1) provide dollar-for-dollar asset protection: when the policy's benefits are exhausted, an amount of assets equal to the benefits paid may be disregarded when the policyholder applies for Medicaid, instead of requiring her to spend down those assets. This feature is what distinguishes partnership policies from ordinary LTC coverage.
Why the other options are wrong
- A) The protection is limited to an amount equal to the benefits paid; it is not unlimited asset protection.
- B) The partnership feature protects assets at Medicaid eligibility; it does not create a premium-refund right against the insurer.
- C) Exhausted benefits are not restored; the protection operates through the Medicaid asset disregard.
Memory hook
Partnership = dollars paid become dollars protected at Medicaid time.