California Law Affecting Medi-Cal (Medicaid) Eligibility for Long-Term Care About to Get A Lot Tougher
California's laws affecting Medi-Cal (Medicaid) eligibility for long-term are about to get a lot tougher.
SB 483 which implements the Deficit Reduction Act of 2005 was passed by the Senate at the end of August and is awaiting the Governor's signature. These changes were required if California wanted to continue receiving federal funding. Full implementation of the new laws should be phased in starting January 2009. Once implemented, many of the current strategies availble for Medi-Cal planning will become useless.
Included among the pending harsh new realities of Medi-Cal eligibiilty:
1. Extension of the "look back" period during which the government will examine all asset transfers from the current 30 month period to 60 months (5 years). Any transfers made for less than fair market value, including any gifts to children, grandchildren, tuition payments, etc, will be used to calculate a period of ineligibility.
2. Penalty period of ineligibility will begin at the time of application for Medi-Cal benefits rather than from the time the transfer of assets occurred.
3. Penalties for individual transfer will no longer be permitted to run concurrently.
4. Exemption for home equity which is currently unlimited will be capped at home equity of $750,000.
SB 483 which implements the Deficit Reduction Act of 2005 was passed by the Senate at the end of August and is awaiting the Governor's signature. These changes were required if California wanted to continue receiving federal funding. Full implementation of the new laws should be phased in starting January 2009. Once implemented, many of the current strategies availble for Medi-Cal planning will become useless.
Included among the pending harsh new realities of Medi-Cal eligibiilty:
1. Extension of the "look back" period during which the government will examine all asset transfers from the current 30 month period to 60 months (5 years). Any transfers made for less than fair market value, including any gifts to children, grandchildren, tuition payments, etc, will be used to calculate a period of ineligibility.
2. Penalty period of ineligibility will begin at the time of application for Medi-Cal benefits rather than from the time the transfer of assets occurred.
3. Penalties for individual transfer will no longer be permitted to run concurrently.
4. Exemption for home equity which is currently unlimited will be capped at home equity of $750,000.
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