The Obama administration today extended equal treatment under the laws governing Medicare and Medicaid to same-sex partners that will allow them to protect assets in the same way opposite-sex couples do when facing financial catastrophe due to the long-term illness or disability of one partner.

In a letter sent today, the federal Health and Human Services (HHS) Centers for Medicare & Medicaid Services (CMMS) advised state agencies of their ability to ensure that same-sex partners can remain in shared homes without Medicaid liens being applied. The guidance also clarifies that states have the flexibility to protect same-sex partners under estate recovery and transfer of assets rules.

“Low-income same-sex couples are too often denied equal treatment and the protections offered to other families in their greatest times of need,” said HHS Secretary Kathleen Sebelius. “This is now changing. Today’s guidance represents another important step toward ensuring that the rights and dignity of every American are respected by their government. ”

“Medicaid gives states remarkable flexibility to set these kinds of policies,” said Cindy Mann, deputy administrator of CMMS who directs the Medicaid division within the agency. “We want to assure states that they are within the law when they make the choice to extend equal financial rights and protections to all of their citizens receiving Medicaid services, regardless of sexual orientation.”

Nowhere in this, however, do we read that states have to do anything. But we hope they will.