Harvesting Medi-Cal Benefits

Planning to Save Family Resources

For a person with disabilities, medical and personal care can improver ish the family. Fortunately, Medi-Cal can pay for baseline benefits. Government payments free up family resources to enhance baseline benefits or support other family members. Congress has authorized specific exemptions and trust arrangements which allow families to retain assets while receiving money saving benefits. To fully harvest Medi-Cal benefits, you must properly plan your affairs conform to government requirements. Otherwise, family resources may be forever lost.

Complex Law

The law is a complex labyrinth of Federal and California statutes, regulations, and official procedures. Under Title 42 of the Federal Code, the Federal Government issues regulations directing the states to enact laws and implement regulations regarding long term care and medical benefits. Sacramento then interprets the Federal Law by enacting California laws which direct the Department of Health Care Services to create regulations and administer them. In addition, you can qualify for Medic-Cal by qualifying for Supplemental Security Income (SSI) under Federal rules and procedures. Thus, the law is complex and fluid. Your best path depends on your particular situation at a particular point in time.

Disqualifying Resources

In general, Medi-Cal will not pay benefits until the person with disabilities and certain supporting family members have less than $2,000 or $3,000 in non-exempt resources. Improper transfers can delay benefits for years. Direct gifts and inheritances may cut off benefits. However, there are very substantial exceptions and exemptions you can take advantage of. Significant exemptions can include a home and a car. Unlimited funds may be transferred into Federally authorized trusts. The state can impose a lien on some trusts but not others. Qualifying insurance can offset liens.

Harvesting Benefits

To harvest Medi-Cal benefits, family resources, gifts, inheritances, and spending should be properly structured. Every family is different. Mistakes can be costly and irrevocable. If you want to learn more about preserving your family resources, I invite you to call me to discuss your needs and resources.