Medi-Cal Planning

The Facts about Medi-Cal

In the state of California, we have the California version of Medicaid, which is known as Medi-Cal. Every Medi-Cal applicant must apply for benefits and must meet the asset and income limitations set by the State of California. 

The rules for eligibility vary according to the stage of the application process. 
For example, when an application has been submitted, a couple’s total assets are examined - both the community property assets and their separate property assets. Once an individual has qualified for Medi-Cal, ONLY the assets of the spouse in the nursing home are examined. Therefore, if the healthy spouse inherits money after the ill spouse has qualified for Medi-Cal, he or she can keep all of it. If he or she inherits money prior to qualifying for Medi-Cal, it will be included in meeting the Medi-Cal asset limits as if it belonged to the ill spouse (Learn more about Exempt Assets).

In order to qualify for Medi-Cal:

• Each applicant must be at least 65 years of age or disabled,

• Meet asset and income requirements

• Be a citizen or permanent California resident

                    OR

• If he or she is blind or disabled, and

• Payment of medical bills would leave him or her with less than the available need standard.

So how does Medi-Cal work if:
a single person ever needs long term care, as a result of dementia, Alzheimer’s, stroke, crippling arthritis, etc.? The State of California will pay for meals, nursing home bills, and medical care. This  single person can only retain $2,000 in assets, plus the exempt assets and then retain these assets ONLY for a limited period of time.  Medi-Cal will NOT let you keep your home and other assets after you die free of liens or claims.

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