California Medi-CAL Planning - Part One

  A middle classed family facing the prospect of a loved one needing long-term care that has a moderate income and assets may need  Medi-CAL (called Medi-Cal in California) to pay part or all of the cost for skilled nursing home care.

Using a qualified elder law attorney for your family’s Medi-CAL planning, allows you to legally qualify for the federal and state Medi-CAL Program. There are several strategies a family can use to make sure their loved one can qualify for Medi-CAL Long Term Care Benefits.

 Over the next few blog posts we will give a brief overview of these strategies.

1. Prepaid Funeral Instead of or in Addition to Burial Funds

Federal rules allow a person on Medi-CAL to keep up to $1,500 for funeral expenses. California allow an applicant to buy a prepaid funeral plan with  additional costs such as the burial plots, caskets and vaults to be tacked on, thus raising the limit.

2. Use of Spend Down Resources

People assume money being spent down for Medi-CAL eligibility needs to be applied to care costs. In reality, Medi-CAL is only interested in seeing the potential Medi-CAL recipient's resources reduced to less than $2,000. How the money is spent is only questioned if there has been a transfer for less than value.

In order to qualify for Medi-CAL more quickly, you may want to use some of the “spend down” money to pay off debt, trade in the old car and buy a new one. (Medi-CAL typically allows a community spouse to retain just one car), or fix up the house. Do not let a skilled nursing staff member tell you that you can only pay for nursing care to qualify for Medi-CAL…this is NOT TRUE!!!

3. Stacked Gifting is only allowed in California

California is the only state that has not adopted the Deficit Reduction Act, and stacked gifting is still legal and allowed by Medi-CAL as long as it is completed in a specific way. This is very tricky and should be guided by a California Elder Law Attorney. 

What you do not know can hurt you... stay tuned to this blog for more Medi-CAL Planning tips.

 

 Take advantage of a free phone consultation or appointment for a free 30 minute consultation to review your individual situation and determine if you would benefit from our experience and legal services.

For more information go to www.la-lawcenter.com or call us at:

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