State partnership reciprocity refers to agreements under which states participating in long-term care partnership programs recognize partnership-protected assets from policies issued in other participating states. When reciprocity applies, a policyholder who buys a partnership-qualified LTC policy in one state and later moves to another can retain some or all of their asset protection for Medicaid eligibility in the new state. Reciprocity provisions aim to preserve the value of partnership planning for mobile individuals and retirees, though specific rules and implementation details can vary. Not all states participate in reciprocity, and some have partial or conditional arrangements.

Advisors consider state partnership reciprocity when clients buying LTC coverage now expect to relocate later, such as retirees moving to different states. They consult reciprocity maps and state guidance to determine whether a client's partnership policy will preserve its asset-protection feature after a move. Advisors explain that while reciprocity is widespread, it is not universal and that Medicaid rules themselves may differ by state. Understanding state partnership reciprocity allows advisors to design LTC plans that remain viable over time and across state lines, improving the long-term value proposition for clients who may not retire where they currently live.