Reciprocity

Reciprocity With Other States
for
Medicaid Asset Protection

Effective April 1, 2009, Indiana was approved by the federal government to join the National Reciprocity Compact for granting of Medicaid asset protection with other states that have Partnership long term care programs.

Questions Regarding Reciprocity

What does this mean for Indiana Partnership policyholders?

Indiana Partnership policyholders who relocate to another state may be eligible to receive dollar for dollar asset protection if applying to that state’s Medicaid program.

The insurance policy benefits are payable in any state where you reside.  But now with Indiana participating in the Reciprocity Compact, the asset protection benefit in your Indiana Partnership policy could also be honored by other states.

Does this change my Partnership policy if I remain in Indiana?

No.  If you are applying to Indiana Medicaid, your Partnership policy could still provide either total asset or dollar for dollar asset protection depending on your policy type.  The Reciprocity Agreement provides portability for asset protection and does not change benefits or premiums with your current policy.

If my Partnership policy was effective before April 1, 2009, am I covered under this reciprocity agreement?

Yes.  All Indiana Partnership policyholders, regardless of the effective date of their policy, are covered under the Reciprocity Agreement.  

What requirements have to be met to qualify for asset protection in other states?

Two requirements must be met:

1)  A Partnership policyholder must qualify and be approved under the other state’s Medicaid program, AND

2)  Both Indiana and the other state must be members of the Reciprocity Compact (or have a separate reciprocity agreement) at the time a policyholder applies to the other state’s Medicaid program.   The reciprocity agreement between Indiana and Connecticut remains in effect.

Does this Reciprocity Agreement guarantee that I will have asset protection with other states in the future?

No.  Indiana and another state must have reciprocity with each other at the time of Medicaid application. States can opt in and out of the reciprocity agreement with 60 days notice.  If a state opts out of Reciprocity, individuals who have already accessed Medicaid would be grandfathered.  If Indiana’s long term care program would be discontinued, an Indiana resident who purchased a Partnership policy prior to the date the program was discontinued, would still be eligible to receive earned asset protection under Indiana’s Medicaid program.

How can I find a list of states participating in the National Reciprocity Compact Agreement?

Click here: https://nyspltc.health.ny.gov/reciprocitymap.htm or call the Indiana Partnership office, toll free 1-866-234-4582 or 317-232-2187.