A special long-term care insurance program can help Alabama residents protect their assets if they ever have to apply for nursing home assistance from Medicaid. The Alabama Long-Term Care Insurance Partnership Program, a collaboration between Alabama Medicaid and the Alabama Department of Insurance, allows Medicaid to disregard, or exclude, the benefits paid under an approved policy when determining an applicant's financial eligibility for long-term care.
First available on March 1, 2009, Partnership policies look like regular long-term care insurance policies except they must include inflation protection to keep up with the rising cost of long-term care services and meet IRS and other requirements. Only policies certified by the Alabama Department of Insurance qualify as Partnership policies.