The California Department of Health Care Services recently announced new Medi-Cal resource numbers for 2019. In All County Welfare Directors Letter (ACWDL) 18-28 the Community Spouse Resource Allowance (CSRA) was increased to $126,420 and the Minimum Monthly Maintenance Needs Allowance (MMMNA) was increased to $3,161 for 2019. The CSRA is the amount of non-exempt assets that the spouse of a Medi-Cal applicant (the Community Spouse) may own. The MMMNA is the target amount of income for the Community Spouse. If the Community Spouse’s income is below the MMMNA, some or all of the Medi-Cal recipient spouse’s income will be allocated to the Community Spouse if necessary to bring the Community Spouse’s income up to the MMMNA.
In addition, in ACWDL 19-07, the Average Private Pay Rate (APPR) was increased to $9,337 for 2019. The APPR is the divisor used to determine the penalty period assessed against a Medi-Cal applicant when gifting was done to achieve eligibility. For example, if a $50,000 gift was made by the Medi-Cal applicant to his child, the penalty period is $50,000 ÷ $9,337 = 5.36, or a penalty of 5 months (Medi-Cal rounds down).
Medi-Cal eligibility planning is very complicated. A mistake can result in long periods of ineligibility. Please consult with an attorney before making any plans or transfers.
[Ad] Are you a resident of Walnut Creek or the greater East Bay needing help with your estate plan? At Absolute Trust Counsel, your family’s safety is our number one priority. We understand how complicated it can be to know if you’re making the right legacy planning decisions, which is why we’re here to make things easier. Schedule a free discovery call, and let’s talk about how we can help build the right plan for you and your family. Or, if you have a question about the content in this blog, please feel free to get in touch with us by calling 925.943.2740 or sending an email to Info@AbsoluteTrustCounsel.com.
If you’re someone who needs to include Medi-Cal planning in your estate plan, we can help. For more information on what Medi-Cal planning should look like, visit https://absolutetrustcounsel.com/practice-areas/medi-cal-planning/ for even more resources to help get you started.
