Medi-Cal Recovery Law Changes

12 Dec Medi-Cal Recovery Law Changes

Medi-Cal Recovery. If you have no clue what that is or this is first time your hearing about it, you are not alone. In fact, a lot of people are unaware of this law and unfortunately get hit by it the worst.

Current law in 2016 states that if you receive Medi-Cal and you are over the age of 55, Medi-Cal will ask your beneficiaries for repayment of those amounts paid. They will recovery the assistance they provided to you throughout your years of need.

For example, Dan is 70 years old and owns his house which is paid off. He applies for Medi-Cal and qualifies to receive Medi-Cal assistance. He passes away and his children have inherited his house that is valued at $500,000. At his death, the California Department of Health will seek to recover every penny paid through their Medi-Cal program to Dan. They will either ask the children to pay them directly or place a lien on the property for the amount with interest accruing.

There are some exemptions to this law.

Luckily, effective Jan 1, 2017 some new changes to the recovery laws are going into effective that will allow a person to receive Medi-Cal without fearing their assets would be sought after. But, the catch is that they have to properly plan their estate to make sure that Medi-Cal cannot seek recovery under one of the law’s exemptions.

For example, before Dan passes away, he contacts his attorney who creates an estate plan with Medi-Cal recovery avoidance at the forefront of the plan. Upon his passing, the children will inherit and Medi-Cal will not be able to seek recovery.

So, if you are 55 and older and you receive Medi-Cal or think you may receive Medi-Cal in the future, be sure to consult with our office to learn how you can properly plan for your death, so that your home ends up in the hands of your loved ones and not the state of CA.

If you have questions about this topic or want to discuss it in detail, feel free to take advantage of our free consultations. We have offices in Glendale and Sherman oaks.