… This is government insurance for people who have very little money that covers, among other things, the cost of home care and nursing home care when a recipient can no longer care for himself.
What is Medicaid? It is called Medi-Cal in California (and only in California). More than likely you have heard of Medicaid/Medi-Cal, considering it has been part of the national political debate for some time. But what exactly does Medicaid mean to you and your elderly loved ones?
If you have elderly parents in California, it is high time to learn about Medi-Cal and how it works.
Fortunately, a recent Forbes article is a good place to start. The article is aptly titled “Medicaid And Your Parents: The Basics.” Essentially, Medi-Cal is a program run jointly by the federal government and each respective state government. Think of it as government insurance for, among other things, late-in-life medical care like home care or nursing home care when the one needing care has too limited financial resources.
Medi-Cal is “means-tested.” Consequently, having too great an income or too much in assets will disqualify a Medi-Cal applicant and create a legal hurdle to receiving benefits. In addition, having “assets” is not the same as having the money to pay for care.
For those with assets exceeding the Medi-Cal limits, “giving” assets away will only disqualify them from Medi-Cal assistance if the transfers violate the “look back” period designed to keep them from gaming the system. Of course, an elderly individual might have had innocent intentions when they made a disqualifying gift a few years ago and the need for Medi-Calwas unforeseen. Regardless, such transfers are a red flag when it comes to Medi-Cal qualification.
Each state is subtly different in its approach, but these are very real rules and they require careful thought and timing. Otherwise, it is easy to run afoul of the rules now and be disqualified from care later. You owe it to your elderly loved ones to start planning for a worst case scenario without delay.
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Reference: Forbes (February 11, 2014) “Medicaid And Your Parents: The Basics”