FAQ

How much money are you allowed to have?
The rules are different for married couples and for single individuals. For the year 2002, a single person or a married person going into a nursing home may have no more than $2,000 in their name. The spouse at home may have no more than $89,240.

Do we have to sell the house to pay the nursing home?
No. An applicant¹s home is treated as an ‘exempt asset¹ which means it does not count towards the $2,000 requirement, no matter how valuable the house is.

What does ‘spend down¹ mean?
If a Medi-Cal applicant, or their spouse, have more in the way of assets, such as savings accounts, than the rules allow, they will be told to ‘spend down¹ or deplete their savings and assets until they meet the $2,000 and $89,240 levels and qualify for their entitlements.

Can we do anything to protect these assets?
Yes. The State of California passed a law requiring every applicant of Medi-Cal entitlements for long term care be given a disclosure telling them they have the right to transfer assets to protect the assets for a spouse or anyone else they choose. The Form is DHS Form 7077.

Can I just give the money away to my kids?
No. It generates penalties if you give any away for less than fair market value, like a gift. the penalties are measured in months that Medi-Cal will not pay for the applicant¹s care. A total of 30 months in penalties can be assessed.

I put my children¹s names on my accounts and on title to my house. Does that protect the savings or my house?
No. It not only fails to offer any protection, it can keep you from getting your benefits altogether. Even worse, you could legally lose your house or your savings to the creditors of your children.

What does ‘look back¹ mean?
If you transferred any assets, or gave anything of value away during the 30 months preceding the application for entitlement benefits, you must report it on the application. It is a crime not to do so. Medi-Cal has the right to review those transfers for the last 30 months, or ‘look back¹ at those transfers for the last 30 months and determine if they violate the rules. If the rules have been violated, they will deny the benefits of long term care to the applicant until a penalty period, calculated by a formula, has expired.

What is an ‘exempt asset¹?
An exempt asset does not count towards the requirement that an applicant have only $2,000 assets in their name. An applicant may transfer assets that would normally keep them from qualifying for benefits into exempt assets. Form 7077 describes that process in detail.

Are Medi-Cal long term care benefits welfare?
No. In 1965, President Johnson signed into law Medicare for seniors health care and medicaid (known as Medi-Cal in California) for seniors long term care benefits. These were entitlements programs designed to assist and protect senior Americans and their families from the financial devastation of health care costs and long term care costs. Just as Social Security provides income protection for seniors, so to do these programs protect seniors and their families.

Do I have to spend everything in my retirement or IRA to qualify for Medi-Cal?
No. Retirement benefits can often be protected completely.

How long does it take to get approved?
A decision is required by law in 45 days.

Will the State come after the house later?
Yes. Assets in an applicant¹s estate will be subject to recovery by the Department of Health Services of the State of California, including , and especially, the house. DHS will seek recovery of every dollar spent in benefits, meaning the State gets paid before your family.

I have a Living Trust. Does that protect my house from a claim for reimbursement by the state?
No. California uses a ‘broad definition¹ of an estate. The trust may protect your assets from probate or estate taxes buy it will afford you absolutely no protection from recovery by DHS.

Is there anything we can do to protect the house from a claim?
Yes. there are strategies available to provide your family complete protection from a claim for recovery. You need professional advice to take full advantage of these strategies.

Where should I seek advice on these issues?
You need to talk to experienced professionals that deal with these regulations everyday. Ask them how many cases they handle every month...how often do they attend educational seminars to receive the latest training and information...what organizations do they belong to that help and support seniors and their families. These rules are complicated and changing all the time. You need the most accurate, powerful information to protect yourself and your family. Do not accept anything less.

ASAP
Advanced Senior Asset Preservation, LLC
(888) 719-2727