Most people are aware of the fact that Medi-Cal is a health insurance program that is only available to people who can demonstrate a significant level of financial need. However, many seniors who retired with resources ultimately apply for Medi-Cal coverage, because the program will pay for long-term care. Medicare does not pay for custodial care, which is the type of care you would receive in a nursing home.
Some people are not too concerned when they hear about the lack coverage, because they are healthy and they assume that they will always be able to take care of their own needs. In reality, the majority of senior citizens will someday need living assistance. Seven out of every 10 seniors will require long-term care according to a government agency.
How can you qualify for Medi-Cal if you are going to have money in the bank and real property in your possession when you attain senior citizen status? The answer for many people is a Medi-Cal spend down. You could give gifts to your loved ones before you apply for Medi-Cal so that you can stay within the $2000 limit on countable assets.
The powers-that-be do not want people to give away assets after they find out that they need long-term care. To prevent this, there is a Medi-Cal look back. The look-back in the state of California is 30 months. If you want to obtain eligibility in a timely manner after submitting your application, your gift giving must be completed at least 30 months before you apply.
We should point out the fact that Medi-Cal is California’s version of the national Medicaid program. You may hear that there is a five-year Medicaid look-back rather than a 30 month look-back. Around the country, the look-back is five years, but the Medi-Cal look-back period is 30 months at the present time. Eventually, it is supposed to be raised to match the look-back that is in place in other states.
Medi-Cal Planning Report
When you hear about the fact that Medicare will not pay for long-term care, and you understand that most people will need it, you may want to learn more about the Medi-Cal program. If you would like to obtain in-depth information about the program, download our special report.
This free report covers a lot of ground, and you can access your copy through this website. To obtain your copy of the report, visit this page and follow the simple instructions: Los Angeles Medi-Cal Planning.
To Schedule a Free Consultation
If you are interested in the possibility of working with our firm after learning these facts, please select our “Workshops” tab to RSVP for a free estate planning workshop. At that workshop you will be offered a free one-hour consultation with an attorney: www.collinslawgroup.com/seminars/