Many folks continue to be confused about the differences between Medi-Cal and Medicare. Both Medicare and Medi-Cal, which is California’s name for the Medi-Cal program, have their originals in federal law. They were originally enacted in 1965 under President Johnson’s Great Society programs. Both programs have evolved over the years. Medicare was focused on providing health care for the elderly while Medi-Cal was focused on providing health care for the poor. California’s Medi-Cal … [Read more...]
Should I Pay a Lawyer for Medi-Cal Planning?
Elder law attorneys vary in what they charge for Medi-Cal planning; a common fee is equivalent to the average cost of one month in a nursing home. However, it will typically vary depending on the complexity of the needed planning. Why should you pay thousands of dollars for Medi-Cal planning? The answer is simple: To save what you have. If you don’t bother with nursing home planning and you need care, you will continue to pay with your private funds until they run out. Once you’re broke, … [Read more...]
A Primer on Medi-Cal Long Term Care Planning (Part 1 of 2)
If you are concerned about long term care costs, you are not alone. According to the study Aging in Place in America, more people over the age of 65 are afraid of moving into a nursing home than are afraid of death. One of the problems with our fears is that so many of us choose to ignore them. Ignoring the possible need for nursing home care means that you miss out on the valuable chance to plan ahead. Not only does planning ahead let you shape what your nursing home experience might look … [Read more...]
Medi-Cal and Nursing Home Care
Long-term care facilities, such as nursing homes and assisted living facility, are typically quite expensive for families. Unfortunately, most private health insurance policies do not cover services at nursing homes. To make matters worse, Medicare coverage for nursing home care is very restricted. Most people do not have insurance policies that include coverage for private long-term care. The most common financial resources for California residents in need of long-term or nursing home care is … [Read more...]
Overview of How to Pay for Long Term Care (Part 1 of 2)
As we age, many of us become increasingly concerned about the possible need for long term care and the options available to pay for it. In this article, we will examine those options. There are 5 basic ways to pay for long term care: 1. Private Pay 2. Long Term Care Insurance 3. Medicare 4. Medi-Cal 5. Veterans Benefits Not all of these methods will be available to all persons. For example, veterans benefits are limited to only certain veterans. Long term care … [Read more...]
The Value of Irrevocable Trusts
On the surface, an irrevocable trust speaks for itself: it is a trust that you cannot revoke or dissolve after it has been created. For the most part, this is true, and you may not feel very comfortable about the prospect of surrendering control over your assets. At the same time, irrevocable trusts can be used to satisfy some important estate planning objectives. For example, there is the matter of taxation. There is a federal estate tax that can be a source of asset erosion for people … [Read more...]
Medi-Cal Long Term Care Primer- Part 4 of 4
An important, but frequently overlooked, aspect in Medi-Cal long term care (LTC) benefit planning is Medi-Cal Estate Recovery. The Medi-Cal laws requre that the state pursue recovery from a Medi-Cal LTC beneficiary's estate following death for the benefits obtained during his or her lifetime. These benefits have often been accruing at thousands of dollars a month. In cases of extended periods of care, recovery claims can be hundreds of thousands of dollars. In situations involving a … [Read more...]
Medi-Cal Long Term Care Primer – Part 3 of 4
The second planning consideration for Medi-Cal Long Term Care Benefits (LTC) is called share of cost. Once Medi-Cal LTC eligibility is established (See Part II), attention turns to share of cost. It is the co-pay requirement of Medi-Cal LTC. Typically, a Medi-Cal LTC beneficiary must contribute their monthly income towards the cost of his or her care. This usually includes Social Security, pensions, investment and rental income, among others. Certain deductions are allowed, e.g., health … [Read more...]
Medi-Cal Long Term Care Primer – Part 2 of 4
In this blog, we will address how eligibility for Medi-Cal long term care (LTC) benefits is established. Eligibility is essentially an asset test. For eligibility purposes, assets fall within one of three categories: countable (non-exempt), not countable (exempt) and unavailable (countable, but not counted). To be eligible for Medi-Cal LTC, an individual applicant's countable assets must be below $2,000. If the applicant is married, in 2015, the spouse can have another $119,220 of countable … [Read more...]
Medi-Cal Long Term Care Primer – Part 1 of 4
Many persons are confused about the Medi-Cal Long Term Care benefits program. This is perfectly understandable. Medi-Cal is a complex public benefits program that is a joint venture of the federal, state and county governments. There are state and federal statutes, state and federal regulations, less formal rules and procedures and, add to that, the rules change from time to time and vary from county to county and sometimes among workers within a county. An additional concern in these … [Read more...]
