The 2016 California State Budget Act incorporates the limitations on recovery by the California Department of Health Care Services ("DHCS") arising out of services from Medi-Cal. The changes were originally proposed in Senate Bill 33.
The changes include:
- No recovery against the estate of a surviving spouse;
- Recovery limited to the federal law requirements, in other words, only for nursing home facility and long term care services provided after age 55 or any age if the person was “permanently institutionalized”;
- No recovery against homes of modest value;
- Recover only against a probate estate, and so living trusts and joint tenancies will escape recovery; and
- A limit on the interest on Medi-Cal liens.
The changes will dramatically decrease the effort needed to escape recovery for Medi-Cal expenses for long term care in a nursing home.
By Kevin Staker
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