Medi-Cal is designed to help pay for the medical care of public assistance recipients and other low-income people with few assets. Specifically, monthly payment of Nursing Facilities for your loved ones.
SB 833 of the Welfare and Institutions Code substantially amended Recovery Rules for individuals having received Medi-Cal benefits. Avoiding MediCal Recovery just got easier.
- No recovery on property in trust…of any kind
- No recovery on joint tenancy property
- No recovery on property with beneficiary designation
- No recovery on life estates
- No recovery on mobile or manufactured homes
Clients should avoid probate assets utilizing a Revocable Living Trust and for married clients potentially increase the Community Spouse Resource Allowance and the Minimum Monthly Maintenance Needs . Due to the limitations of Medi-Cal and Medicare payments, clients should consider Long Term Care Insurance and avoid the average $8,000 per month costs.
Even though the Recovery Rules are favorable in most cases, they are complex in their understanding and application. Individuals should seek professional counsel to qualify and avoid loss of precious family assets.