State RegulationsNY specificDifficulty 2/5
A New York Partnership policyholder assumes that because his policy meets Partnership standards, Medicaid must cover him when the policy's benefits run out, no matter how high his income is. Under Reg 144, the Partnership's asset protection:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Under Reg 144 (11 NYCRR Part 39), the Partnership's core benefit is asset disregard: when benefits are exhausted, assets equal to what the policy paid are protected in the Medicaid eligibility calculation. That protection is targeted - it shields assets, not income. Medicaid's income rules and its other eligibility requirements continue to apply, so Partnership status is not a blanket Medicaid guarantee for a high-income policyholder.
Why the other options are wrong
- A) The Partnership modifies only the asset side of the eligibility test; income and other requirements still apply in full.
- C) Income and assets are separate categories; the disregard covers assets and creates no conversion of income.
- D) Protected assets are shielded precisely so they need not be spent down; requiring that would undo the protection the program promises.
Memory hook
Asset disregard shields wealth; income rules still bite.