Many individuals are under the impression that Medi-Cal is only relevant to people who are broke. It is true that this program is designed to provide, among other things, a health insurance recourse for people with very limited monetary resources.
At the same time, some who were never extremely poor do try to obtain Medi-Cal eligibility as senior citizens. This can be the case even when they are enrolled in the Medicare program.
Though this can seem confusing, Medi-Cal is relevant, because Medicare does not pay for custodial care. A majority of people who have attained senior citizen status will someday need assistance with their activities of daily living, and Medicare will not pick up the tab. This type of care is considered to be custodial care rather than rehabilitative or convalescent care, so it isn’t covered.
Getting out your checkbook to pay out-of-pocket is not a very appealing proposition. Our practice is in the Sacramento area. According to the annual Genworth Financial study, in our area of the state of California, $150,836 is the median annual cost for a private room in a nursing home. The average length of stay is over two years, and about 10 percent of seniors in nursing homes remain in the facilities for at least five years.
Medi-Cal is the solution for many seniors, even if they were never extremely poor, because the program does pay for custodial care.
Divesting Yourself of Assets
You would logically consider gift giving to get assets out of your own name so that you can qualify for Medi-Cal. This is often done, but you have to be cognizant of the look-back. In California, the gift giving must in many cases be completed at least 30 months before you submit your application if you want to be eligible right away. However, an experienced and qualified elder law attorney can advise you how to successful transfer assets even during the 30 month look back period.
To be eligible at the ideal time without losing much in the process, ideally, you should plan ahead with future Medi-Cal eligibility in mind long before you actually require long-term care.
Special Medi-Cal Planning Report
When you consider the fact that you are probably going to require living assistance at some point in time, you should educate yourself about the ins and outs of the Medi-Cal program. If this make sense to you, we have a valuable resource that you can access through this website.
Our firm has prepared a comprehensive special report on nursing home asset protection and Medi-Cal planning. This report is being offered on a complimentary basis, so you can get your copy without making any financial commitments. Simply click the following link to obtain access to your copy of the in-depth special report: Sacramento Medi-Cal Planning.