Medi-Cal Recovery Law Changes

Medi-Cal Recovery

Do not worry if this is the first time you are hearing the term “Medi-Cal Recovery“. You are not alone because many people are unaware of this law.

Current law states that if you receive Medi-Cal and you are over the age of 55, Medi-Cal will demand your beneficiaries repay the amounts paid. They will recover the assistance they provided to you throughout your years of need.

Here is an example to help you further understand… Dan a 70 years old is the owner of his paid off house. He applies for Medi-Cal and qualifies to receive Medi-Cal assistance. Dan’s house that is valued at $500,000 is inherited by his children after he passes. The California Department of Health will go after every penny paid through their Medi-Cal program to Dan. They will either ask his children to pay them directly or place a lien on the property for the amount with interest accruing.

Exemptions To This Law

Since Jan 1, 2017, some new changes to the recovery laws have gone into effect. These changes allow a person to receive Medi-Cal without fearing the recovery of their assets, but, there is a catch. Individuals have to properly plan their estate to make sure that Medi-Cal cannot seek recovery under one of the law’s exemptions.

For example: Dan being responsible, contacts his attorney who creates an estate plan with Medi-Cal recovery avoidance at the forefront of the plan. Upon Dan’s passing, the children will inherit and Medi-Cal will not be able to seek recovery.

If you are 55 and older and you receive Medi-Cal or think you may receive Medi-Cal in the future contact 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.

Our firm offers free consultations so feel free to contact us with any questions about this topic. We have offices in Glendale and Sherman oaks.

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