The Arkansas Long Term Care Partnership Act will take effect Tuesday.

Arkansas will become the tenth state to start a long term care insurance partnership program since Congress authorized expansion of the program in the Deficit Reduction Act of 2005, Arkansas officials report.

Until Congress passed the DRA, only California, Connecticut, Indiana and New York could offer partnership programs.

Partnership programs give states a vehicle for encouraging residents to buy private LTC insurance, by easing Medicaid nursing home benefit qualification requirements for private LTC insurance holders who end up turning to Medicaid because they have exhaused their private LTC insurance benefits.

In most cases, people must exhaust nearly all of their assets before they can get Medicaid nursing home benefits.

The Arkansas partnership program will permit residents to keep an extra dollar of assets for every dollar of qualified LTC insurance purchased, officials say.