The Deficit Reduction Act of 2005 now makes this partnership program available to all states with 21 states already having enacted legislation to go into effect in 2007. The AARP article goes through the pitfalls of the program (it is not a panacea).

Four states, California, Connecticut, Indiana and New York, piloted LTC partnership programs that allow individuals who have exhausted benefits of their private long-term care insurance to access Medicaid without the same means-testing requirements as other applicants. In other words, if their policy provided $300K in benefits the Medicaid beneficiary would
be allowed to keep $300K of assets and still be eligible for Medicaid. To qualify, states and the insurance plans must meet extensive federal requirements outlined in the provisions.