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What is Medi-Cal Planning In California?


Medi-Cal planning is planning your estate so that in the event that you need to stay in a skilled nursing facility for an extended period of time, it’s possible to preserve all of your assets. Medi-Cal will only pay for your care in a skilled nursing facility if you meet certain requirements. Medi-Cal planning structures your estate so that you are technically impoverished and therefore qualify for coverage. This process is completely legal.

Skilled nursing facilities are extremely expensive. Most people would need to spend entire life savings in a matter of months, which very often leaves spouses without the financial means to live. Medi-Cal planning is getting the health care you need when you need it.

What Are The Income Or Resource Levels For Medi-Cal?

Income limits and resource limits are calculated separately. Medi-Cal resource levels for a married person allow the spouse at home to have a $127,000 of countable assets. There are some assets that are not counted. An IRA or 401(k) are not countable assets. You could have $10 million in a 401(k) and it doesn’t count for Medi-Cal purposes. A single person can only have $2,000 in countable assets. A home, a 401(k), or an IRA can have practically unlimited value because they are not counted. As far as income limits, if you’re married, your spouse at home can keep up to about $3,300 per month. Anything more than that is going to go to the nursing home via what’s called share of costs. The transfer of assets involved in Medi-Cal planning is trying to reduce your resource level, so you qualify for Medi-Cal and fall under that $2,000 or $127,000 limit.

What is The Medi-Cal Look Back Period And How Does It Affect Eligibility?

The Medi-Cal look back period is currently 30 months and exclusively concerns nursing facility eligibility. There are penalties if you transfer your assets incorrectly during those 30 months. If we do it right, we can almost ignore the look back period because it is only looking for disqualifying transfers.

For more information on Medi-Cal Planning In California, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (916) 674-2066 today.

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