State RegulationsMI specificDifficulty 1/5
The Michigan Long-Term Care Partnership Program applies to 'qualified' long-term care policies. Which federal provision is the basis for an LTC policy's qualified status?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The federal tax definition of a qualified long-term care contract comes from Section 7702B of the Internal Revenue Code, and Michigan's Partnership Program is built on that foundation: per the Michigan Department of Insurance and Financial Services (DIFS) Partnership Program disclosure, the program applies to tax-qualified LTC policies issued after December 31, 2007, within the state framework of M.C.L. 500.3901-.3955. A policy that fails the federal qualified standards cannot receive Michigan Partnership treatment, no matter how its benefits are marketed.
Why the other options are wrong
- A) Part B enrollment drives Medicare supplement open-enrollment timing, not the tax qualification of an LTC contract.
- C) COBRA governs continuation of employer group health coverage and has no role in defining a qualified LTC policy.
- D) Social Security disability definitions determine federal benefit eligibility, not whether an LTC contract is tax-qualified.
Memory hook
Qualified means 7702B: the tax code defines the club, Michigan admits the members.