Medi-Cal is designed to help pay for the medical care of public assistance recipients and other low-income people with few assets. Medicare, on the other hand, provides medical benefits for the elderly and disabled. A crucial difference between Medicare and Medi-Cal coverage is that Medicare makes only limited payments for skilled nursing home care, while Medi-Cal pays for custodial nursing home care indefinitely.
Eligibility for Medi-Cal is determined by need. Certain types of property are exempt and, if a person’s remaining resources are still too high for eligibility, it may be possible to “spend down” the resources or convert them into exempt resources.
Exempt Assets include:
- Principal Residence (“intent to return”)
- Automobile
- Burial Plots or Burial Contracts
- Property Used in Trade or Business
- Property Used for Self-Support
- Personal Belongings/Furnishing
- Term Insurance
- IRAs & 401(k) If Meets Criteria
- (Spouse IRA Always Exempt)
- Certain Annuities
- Cash Value Life Insurance $1,500
Non-Exempt Assets include:
- Real Estate (not residence)
- Cash
- Checking
- Savings
- Certificates of Deposit
- Stocks, Bonds
- US Savings Bonds
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