If you think someone in your family is at risk of needing long term care in the next 5 years, it is critical that you totally understand how that an ill person’s estate can be moved and be able to qualify for Medi-CAL if it becomes the only way this person can be cared for 24/7.
There are many questions in California about how people needing Medi-Cal can get help to pay for Nursing home long term care (averages $8,515 per month for custodial care in California). You can qualify for Medi-Cal LTC and not pay this private pay rate… you may get free nursing home care if married and making under $3,090 or it may be just you monthly social security check that is that only requirement if you are single. Not bad for $8,000 to $30,000 (sub-acute care) a month!
Many professionals (social workers, hospital discharge staff, doctors, CPAs, financial advisors, estate planning lawyers) do not understand the Medi-CAL laws and rules in California. It is best to look up an elder law attorney that will help with planning of moving assets and then actually apply for Medi-CAL as the authorized Representative (so you never have to talk to a state worker…it is all done through the elder law firm).
Fortunately, there are multiple ways to meet the rules and exemptions made for families to qualify for Medi-Cal. Under the rules in California, applicants are permitted to transfer assets out of their name during the look-back period without incurring a penalty (time where applicant will not get Medi-CAL benefits). Less fortunately, these rules are often confusing and difficult to implement without the expertise of an experienced Elder Law Attorney.
Most professionals assume you cannot gift and must spend money on medical expenses. This is not true!
There are many ways to qualify for Medi-CAL in skilled nursing home and this may be only way a family can safely care for an ill loved one. It is almost impossible to pay caregivers the going rate of $25 an hour… 24/7 this means it will cost $600 a day or $18,000 a month! Now there is room in the middle until skilled care is needed, but your estate needs to be protect long before you need this type of care.
Soon California will fall in line with the federal guidelines so the state will get more money from federal government to pay Medi-CAL bills…this means the rules will change and they will be much more strict! For example, in 2018 we can protect a house from Medi-CAL estate recovery or being counted as an asset… when the federal rules come in we are expecting there will be a limit to how much equity can be in the house to be moved. This is problem in California as starter houses are around $600,000. We can save almost 100% of all asset today, but we are expecting to be limited to 50% or less when new rules come in. SO we are standing on rooftop screaming…IF YOU MAY NEED MEDI-CAL LONG TERM CARE BENEFITS IN THE NEXT 5 YEARS…CALL AN ELDER LAW ATTORNEY TODAY!
We offer free phone or office consultations and can tell you your options before it is too late! Call 818.241.4238