Medi-Cal considers its payments to be a loan, and if no Medi-Cal planning is done, Medi-Cal will seek to recover its payments from any assets that remain after the death of both the ill person and their spouse.Medi-Cal planning involves a series of careful legal steps to help an ill person qualify for Medi-Cal while keeping as many assets as possible for the use of the ill person, their spouse, and any dependent children. The planning also focuses on a process to transfer assets to the children before the death of the ill person and their spouse, so as to protect those assets from later Medi-Cal reimbursement claims.

If you think it is likely that you, your spouse, or your parent will need nursing home care within the next few years, now is a good time to begin Medi-Cal planning; the sooner planning begins, the greater the protection that can be obtained.

San Diego Law Firm has years of experience handling Medi-Cal planning  and can help you with each step of the process.  We can prepare all necessary legal documents, help you qualify for Medi-Cal while protecting your assets, arrange for transfer of title to assets, protect you as much as possible from income, gift, and property tax consequences of Medi-Cal asset transfers, and develop a strategy that ensures your stability in the present and protects your family’s future inheritance.  If you are considering nursing home care for yourself or a family member and would like to qualify for Medi-Cal payments for that care, or if you are already struggling with a Medi-Cal application, please call San Diego Law Firm today at (619) 794-0243 to schedule an appointment.  We can help you.

The reality is that most people underestimate the cost of long-term care, or assume their family members will be able to handle their needs.  The cost of a nursing home can easily exceed $100,000 per year.  Medicare only covers 100 days of care, while Medicaid only covers care if the person has few assets.  The enormous costs of nursing homes can quickly drain a person and/or their family’s life savings.

Medi-Cal planning offers a solution to the difficulties of paying for long-term care.  If a person qualifies for Medi-Cal, the program will pay for them to be in a nursing home as long as the person’s health requires skilled nursing home care.  In order to qualify for Medi-Cal, the person’s liquid assets must be below a certain limit. 

San Diego Law Firm’s attorneys are experienced in Medi-Cal planning and can assist you or a family member in qualifying for Medi-Cal by helping you convert your liquid assets into exempt assets.  Exempt assets are not counted in determining your Medi-Cal eligibility.  By using your liquid assets to pay off loans and bills, pay for necessary expenses, or purchase an annuity that complies with Medi-Cal restrictions, you can save yourself and your family hundreds of thousands of dollars. 

It’s important to note that Medi-Cal considers the money it pays to nursing homes to be loans.  After a person dies, Medi-Cal will attempt to recoup the money from the person’s estate.  However, there are precise legal steps that can be taken while the person is alive to protect their assets.  If this is done, the assets can pass to the family members and be exempt from Medi-Cal collection.

Medi-Cal law is complicated and constantly evolving with new legislation and health care reform affecting many aspects.  It’s critical to use an attorney who understands the details and specific requirements of the law in order to get the benefits Medi-Cal planning can offer.  Planning for long-term nursing care for yourself or a loved one not only saves money, it also provides peace of mind that is priceless.  If you would like to know more, or to find out if Medi-Cal planning is right for you or someone in your family, please contact one of San Diego Law Firm’s skilled Medi-Cal planning attorneys by calling 619-791-0243 to set up an appointment.

These facilities ensure that a senior is receiving the proper level of care while maintaining as much of their independence as possible.  However, the cost of many care facilities can run thousands of dollars per month.   Medicare will only pay for 100 days of care in a nursing home after a 3-day hospital stay.  After Medicare runs out, the person will have to pay for their care themselves, or qualify for Medi-Cal.   Medi-Cal is California’s public health insurance program which provides services for low-income people, including seniors. 

California’s Medi-Cal program covers long-term care in skilled nursing home facilities for people who require 24-hour care.  If the person qualifies, Medi-Cal will pay for the nursing home and medical treatment given at the nursing home.  If the person qualifies but only requires assisted living, Medi-Cal will not cover the cost of the facility, but will cover the cost of medical treatment if the person does not have enough income to pay for it themselves.  In order for Medi-Cal to cover the cost of a nursing facility, the person who is ill and their spouse must have an income that falls below a certain limit. 

In determining a person’s income, Medi-Cal differentiates between “liquid” (countable) and “exempt” (not countable) assets.    A Medi-Cal attorney can help convert countable assets to exempt assets so that the ill person and their spouse can keep more of their assets while still having Med-Cal cover the cost of a nursing home.  After the ill person dies, Medi-Cal will try to recover some of its costs from the ill person’s estate.  A Medi-Cal attorney can help develop a plan so that Med-Cal will be limited in the amount it can collect.  This will allow the ill person to pass more of their estate on to their family members.   

The application process for Medi-Cal is long and complicated, and Medi-Cal laws change constantly.  In developing a Medi-Cal plan, it is critical to work with an experienced Medi-Cal attorney.  Contact San Diego Law Firm at 619-794-0243 to find out how you can plan for long-term nursing care for yourself or your loved one.

Currently, to qualify for Medi-cal benefits, a single person can’t have more than $2,000 in “countable” or “non-exempt” assets, and a married person whose spouse will still live at home can’t have more than $109,560 in countable assets.  Countable or non-exempt assets are generally assets that can easily be turned into cash.  Examples of countable assets include second homes, bank accounts, stocks and bonds, and assets held in your living trust.  Medi-cal rules also establish “exempt” assets that won’t be counted when deciding whether you or a loved one qualifies for benefits.  For instance, the equity in your principle home will be exempt up to $750,000 if you are single and intend to return home.  Whereas, if you’re married or have a child who is blind, disabled, or under 21 and lives in the home, then there won’t be a limit on the amount of equity exempt.  More examples of exempt property include your personal belongings, household items, certain life insurance, and one car.  Your income isn’t counted in determining if you qualify, but it can affect whether you’ll have to pay a share of the nursing home and medical costs.   You can plan to meet Medi-cal eligibility through many different methods, such as by converting countable assets to exempt assets (e.g. by paying down your mortgage or buying a new replacement car), transferring assets to your spouse or family members, or filing a petition to increase the eligibility limit so you can keep extra assets.  But no matter the strategy, the law must be carefully abided by and potential disadvantages have to be evaluated in light of your goals and circumstances.  Certain actions can bring negative tax consequences that will outweigh the possible benefits, or can lead to penalties and lengthy periods of ineligibility.

If benefits are received, then Medi-cal will attempt to collect the payments back through an “estate claim” when the beneficiary passes away by looking to the assets belonging to that person at the time of his or her death.  This includes assets that were previously exempt for eligibility purposes, but there are some exceptions.  For example if the beneficiary’s spouse was living in a home owned by the beneficiary, Medi-cal will not collect until the spouse still living in the home has also died.  Some assets can be legally transferred away during the beneficiary’s lifetime and won’t be subject to collection, but this should only be done when eligibility won’t be jeopardized.  Also note that when it comes to Medi-cal, the rules and regulations are constantly changing, creating additional planning challenges.  Just last year, in September 2008, major changes were introduced when Governor Schwarzenegger signed the Deficit Reduction Act (DRA) into law, which modified important Medi-cal eligibility rules for long term care.  It’s to be expected that more change is on the way.  On this note, a HealthAccess.org blog by Cynthia Craft reports that the Senate Health Committee recently brought experts together to discuss how to restructure the Medi-cal program if the federal government grants California a five-year waiver period starting in September 2010.  If granted, Medi-cal will be able operate outside of current Medicaid rules in order to try out new changes.  Regardless of what may happen, careful planning is essential to protecting your assets for your loved ones.  Learn more about our Medi-cal help, and when possible, prepare early while you have the most options available to safeguard your estate from the rising costs of long term medical care.  Even if you’ve already been denied Medi-cal, we can often help you reapply and correct previous mistakes.  For experienced, up-to-date help with Medi-cal planning, contact San Diego Law Firm at (619) 794-0243.