Medi-Cal Planning is about asset preservation. It involves the purchasing, transferring, conversion and/or liquidating of assets to enable you or your loved one to qualify under Medi-Cal's test of income and resources.
If you cannot qualify for or afford long-term care insurance, you may need a Trust with special language which includes Medi-Cal strategies and pre-planning. Having a Living Trust is not enough. You need a Trust with special Medi-Cal language as well as a lengthy complex Power of Attorney which allows your agent to do a variety of strategies applicable to your own situation.
To help you preserve assets and still qualify for Medi-Cal—especially important for a married couple that can’t qualify for long term care insurance or afford the very high premiums. Medi-Cal eligibility is determined by the amount of income and resources available to the applicant. Therefore, Medi-Cal planning involves the purchasing, transferring, conversion and/or liquidating of assets to enable you or your loved one to qualify under Medi-Cal’s test of income and resources.
Due to changes in federal laws enacted in 1996, almost anyone can qualify under Medi-Cal’s eligibility tests. This is done by working within the complex rules and regulations of Medi-Cal, and the planning may be different from one individual to the next. It all depends on your personal set of circumstances and objectives.
The Department of Health Services (DHS) makes a Medi-Cal applicant sign a declaration that he is aware that such is possible-the “Notice of Spendown”.
The Medi-Cal rules are very complex, and change every year. Since an improper transfer may result in a period of ineligibility up to 5years, you need to consult with a qualified Elder Law Attorney before attempting to qualify for Medi-Cal benefits.
Frequently asked questions on Medi-Cal