Medi-cal Planning
Helping You With Effective Medi-Cal Planning Strategies
For some clients, estate planning will also include Medi-Cal eligibility planning for nursing home care. Our goal at Absolute Trust Counsel is to plan so that seniors remain independent for as long as possible, while protecting their assets against the expense of nursing home care. We offer compassionate guidance and sound legal counsel whether you are planning well in advance or your family is in a Medi-Cal crisis situation.
Frequently Asked Questions About Medi-Cal Planning
What is Medi-Cal planning, and why is it important? Medi-Cal planning involves structuring your assets and income to qualify for Medi-Cal benefits while preserving assets for your family. With long-term care costs exceeding $100,000 annually in California, proper planning can protect your life savings.
What is the difference between Medi-Cal and Medicare? Medicare is federal health insurance for people 65+ that covers medical expenses but has limited long-term care coverage. Medi-Cal is California’s Medicaid program that covers long-term care for those who qualify financially.
What should I expect to pay for long-term care? The numbers are startling: one out of every two women and one out of every four men find themselves in a nursing home at some point in their lives; nursing home care averages between $6,150 and $14,550 a month in California; and two out of three families run out of money within one year of a prolonged nursing home stay.
Can I plan for long-term care before I need it? Medi-Cal pre-planning, also known as non-crisis Medi-Cal planning, is for people who are currently healthy but want to make sure that if they become incapacitated, they will be able to protect their life savings. We can design a plan that allows you to preserve your assets and adequately manage your personal and financial affairs in the event of incapacity. With a well-designed and properly implemented plan in place, you not only ensure that you will be well cared for if you become incapacitated, but also enjoy greater peace of mind.
What is the Medi-Cal look-back period? Medi-Cal has a 30-month look-back period for asset transfers. Transfers made during this period may result in a penalty period where you’re ineligible for benefits. Planning must begin well before needing care to be most effective.
What assets are exempt from Medi-Cal eligibility? Exempt assets include your primary residence, one vehicle, tangible personal property, prepaid burial funds, and certain other items. Non-exempt assets must be “spent down” or transferred to qualify for benefits.
Can I protect my home from Medi-Cal recovery? California has estate recovery programs that may claim your home after death to recover Medi-Cal costs. However, various strategies, including spousal protections, caregiver child exemptions, and proper planning, can help protect your home.
What if I’m told I have too many assets to qualify? A Medi-Cal crisis is a situation in which an individual has already been admitted to a nursing home—or must be placed in one very soon—and has been informed that he or she has too many assets to qualify for Medi-Cal assistance. Don’t panic, the laws governing Medi-Cal eligibility are complicated and ever-changing. Few people fully understand them as the team at Absolute Trust Counsel does, and we can help. Contact our office as soon as possible so that we can show you how to obtain assistance from Medi-Cal.
What can I do to make sure my family is able to pay for long-term care? Fortunately, there are options to preserve your life savings. When faced with the prospect of expensive long-term care, we can help you qualify for assistance from Medi-Cal. We can put a number of powerful legal tools to work on your behalf to prepare in advance for a nursing home stay, or help you in a Medi-Cal crisis situation.
Reference Guide 3
Medi-Cal Resource Limits Handout
Do You Think You Have Too Many Assets to be Eligible for Medi-Cal? We Can Help. Download Our Free Tool to See Exactly How Your Assets Factor In.
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