2016 Medi-Cal Amounts by Kevin Staker

2016 Medi-Cal Amounts for Long Term Care by Kevin Staker

The Community Spouse Resource Allowance ("CSRA") for 2016, the amount at home spouse can have in countable assets is $119,220 in assets. 

The maximum amount of income the at home spouse is guaranteed to receive is $2,981.  This amount is called the Minimum Monthly Maintenance Needs Allowance ("MMMNA"). The MMMNA can be increased by going to Court and requesting additional support for the at home spouse from the income of the ill spouse. 

For 2016 the Average Private Pay Rate ("APPR") for nursing homes for 2016 is $8,189.  The APPR is used in calculating the term of ineligibility if an individual gives non-exempt assets to other individuals.

By Kevin Staker

Medi-Cal Recovery Only Against Probate Estate for Long Term Care Costs by Kevin Staker

Medi-Cal Recovery Only Against Probate Estate for Long Term Care Costs by Kevin Staker

We have had some time now to digest the 2016 California State Budget Act and its limitations on recovery by the California Department of Health Care Services ("DHCS") arising out of services from Medi-Cal. 

The key point that surfaces is that DHCS can only recover against a probate estate.  Futher, tt can only recover for nursing home facility and long term care services provided after age 55 or any age if the person was “permanently institutionalized”. 

Hence, a living trust of a decedent avoids recovery.  This is another clear advantage of living trusts for estate planning. 

Joint tenancies will also escape recovery; but they can be very crude in their disposal on assets. Especially because a co-tenants creditors can go after their share of the asset.  A living trust avoids that.

Please note these changes are effective for individuals who die on or after January 1, 2017..

For an explanation further in depth, go to the site of the California Advocates for Nursing Home Reform at http://www.canhr.org/factsheets/medi-cal_fs/html/fs_medcal_recovery_FAQ.htm.

By Kevin Staker

Medi-Cal Recovery for Nursing Home Costs Limited by 2016 California State Budget Act (by Kevin Staker)

New Limits on Medi-Cal Recovery for Long Term Care

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.

These changes are effective for individuals who die on or after January 1, 2017..

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