Utah · Long-Term Care · Medicaid · 2026
Utah's Long-Term Care Partnership Program: How a Partnership Policy Protects Your Savings from Medicaid (2026)
There's a way to pay for care and keep your savings — Utah built it into state law.
The bottom line
- Utah's Long-Term Care Partnership Program protects one dollar of your assets for every dollar a qualified LTC policy pays for your care (Utah Medicaid Policy Manual, §513).
- Utah became a Partnership state on October 1, 2014; the policy must be approved by the Utah Insurance Department.
- The protected amount is also excluded from Medicaid estate recovery — so it can pass to your family.
- It matters because about 70% of 65-year-olds will need long-term care (ACL), and a private nursing-home room in Utah runs about $127,750 a year (CareScout 2024).
Most Utah families think they face an all-or-nothing choice for long-term care: pay out of pocket until your savings are gone, or spend down almost everything to qualify for Medicaid. There's a third path that too few people know about — and Utah wrote it into state Medicaid rules. It's the Long-Term Care Insurance Partnership Program, and it lets a qualified insurance policy do double duty: pay for your care and shield an equal amount of your savings from Medicaid. Here's exactly how it works in Utah, with the official sources.
Why long-term care puts your savings at risk
According to the U.S. Administration for Community Living, about 70% of people turning 65 today will need some type of long-term care, and roughly 20% will need it for longer than five years. Care in Utah is expensive: based on the CareScout (Genworth) Cost of Care Survey 2024, a private nursing-home room runs about $127,750 a year and assisted living about $4,685 a month. Medicare doesn't pay for this kind of ongoing custodial care, so families turn to savings, insurance, or Medicaid.
Sources: Utah Medicaid Policy Manual §513 — oepmanuals.dhhs.utah.gov; U.S. Administration for Community Living — acl.gov/ltc; CareScout Cost of Care Survey 2024 — carescout.com/cost-of-care.
What long-term care costs in Utah (2024)
The bigger the potential bill, the more asset protection a Partnership policy can unlock. Here's what care runs in Utah by setting, from the CareScout (Genworth) Cost of Care Survey 2024. Home-care figures reflect roughly 44 hours of help per week.
Annual cost of long-term care in Utah by setting (2024). Source: CareScout (Genworth) Cost of Care Survey 2024 — Utah.
How the dollar-for-dollar asset disregard works
To qualify for Utah Medicaid long-term care, a single applicant can normally keep only about $2,000 in countable assets (Medicaid.gov). A Partnership policy changes that math. Utah adds a "resource disregard" equal to the total benefits the policy paid on your behalf before you apply. In plain English: every dollar your policy spends on your care is a dollar of savings you're allowed to keep and still qualify.
The Utah Medicaid Policy Manual gives a clear example: an individual's Partnership policy pays $14,000 toward nursing-home costs before the application month, so the individual receives a $14,000 resource disregard. And critically, the same protected amount is excluded from Medicaid estate recovery — the process where the state can seek repayment from your estate after death — so that money can pass to your family instead.
A side-by-side example
Say a Partnership policy pays out $150,000 over the course of your care. Here's the difference it makes at the Medicaid application:
| Situation | Countable assets you can keep | Shielded from estate recovery? |
|---|---|---|
| No Partnership policy | About $2,000 | No extra protection |
| Partnership policy paid $150,000 | About $2,000 + a $150,000 disregard | Yes — the $150,000 is excluded |
Illustrative example based on Utah Medicaid Policy Manual §513 (resource disregard equals total Partnership benefits paid). Individual asset limit per Medicaid.gov. Your figures will vary.
Who qualifies in Utah
Per the Utah Medicaid Policy Manual (§513), the asset protection is available when:
- The policy is Partnership-qualified and approved for sale by the Utah Insurance Department, and
- You're a Utah resident with a policy issued on or after October 1, 2014 — or you bought a Partnership policy while living in another Partnership state.
- You meet the clinical and financial criteria for Utah nursing-home or Home and Community-Based Waiver care, with countable income no higher than 300% of the SSI federal benefit rate — about $2,982 a month in 2026 (the 2026 SSI rate is $994/month, per SSA).
A couple of fine-print points from §513: Partnership benefits are generally not counted as income for Medicaid, but the disregard applies only to benefits paid for you — not benefits paid for a spouse — and it does not exempt assets from Utah's transfer-of-asset (look-back) rules. That's why pairing a Partnership policy with proper legal planning matters.
We help Utah families weigh long-term care insurance, savings, and Medicaid — in plain English, with no pressure.
Talk to a planner →Frequently asked questions
What is Utah's Long-Term Care Partnership Program?
It's a partnership between the State of Utah and private insurers that rewards people who buy a qualified long-term care insurance policy. For every dollar a Partnership-qualified policy pays out for your care, one dollar of your assets is disregarded — protected — if you later need to qualify for Utah Medicaid. Utah became a Partnership state on October 1, 2014 (Utah Medicaid Policy Manual, section 513).
How does the dollar-for-dollar asset disregard work?
Normally a single person can keep only about $2,000 in countable assets to qualify for Medicaid long-term care. With a Partnership policy, Utah adds a 'resource disregard' equal to the total benefits the policy paid on your behalf. If your policy paid $150,000 for your care, you can keep an extra $150,000 in assets and still qualify — and that same amount is also shielded from Medicaid estate recovery (Utah Medicaid Policy Manual, section 513).
Does the policy have to be bought in Utah?
It must be a Partnership-qualified policy approved for sale by the Utah Insurance Department, and you must be a Utah resident with a policy issued on or after October 1, 2014. Utah also honors Partnership policies you bought while living in another Partnership state (Utah Medicaid Policy Manual, section 513).
Do Partnership benefits count as income for Medicaid?
Generally no. Utah Medicaid does not count Long-Term Care Insurance Partnership payments as income when determining eligibility (Utah Medicaid Policy Manual, section 513). Eligibility for Utah's nursing-home and waiver programs also requires countable income no higher than 300% of the SSI federal benefit rate — about $2,982 a month in 2026 (SSA).
Is a Partnership policy right for me?
It depends on your health, your assets, and your goals — there's no single right answer, and this is educational, not financial or legal advice. A Partnership policy pairs care coverage with asset protection, but premiums and terms vary and asset-protection planning around Medicaid should involve an elder-law attorney. We're happy to walk through the trade-offs with you in plain English.
Sources
- Utah Medicaid Policy Manual §513 — Long Term Care Insurance Partnership Policies: oepmanuals.dhhs.utah.gov
- Utah Insurance Department (Partnership policy approval): insurance.utah.gov
- CareScout (Genworth) Cost of Care Survey 2024 — Utah: carescout.com/cost-of-care
- U.S. Administration for Community Living — how much care you'll need: acl.gov/ltc/basic-needs/how-much-care-will-you-need
- 2026 SSI federal benefit rate (SSA COLA fact sheet): ssa.gov/news/en/cola/factsheets/2026.html
- Medicaid program details and asset rules: Medicaid.gov
About this article. Written by the Utah Retirement Income Data Desk and reviewed by Brian Penner, Retirement income & long-term care planner. Educational only — not financial, tax, or legal advice. Utah Retirement Income is a licensed independent insurance agency (NPN 16493717) and is not connected with any government agency. Insurance guarantees are subject to the claims-paying ability of the issuing company; policy availability, benefits, and rates vary. Medicaid asset-protection strategies should be reviewed with a qualified elder-law attorney.