California Estate Planning Blog by Kevin Staker

July 5, 2016

Medi-Cal Recovery Limited by 2016 California Budget Act (by Kevin Staker)

Filed under: Kevin Staker,Medi-Cal Planning — Kevin Staker @ 3:58 pm
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CANHR, California Advocates for Nursing Home Reform, reports that the 2016 California State Budget Act incorporates the limitations on recovery by the California Department of Health Care Services arising out of services from Medi-Cal.  Their post is found at http://canhr.org/newsroom/newdev_archive/2016/Governor-Brown-signed-SB833.html.

The changes include:

  • No recovery against the estate of a surviving spouse;
  • Recovery will only be what federal law requires, 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 claims for against homes of modest value;
  • The state can recover only against a probate estate, and so living trusts and joint tenancies will escape recovery;
  • The Act limits the interest on Medi-Cal liens;
  • Individuals who may be subject to recovery can request an itemized billing once a year for a $5 fee; and
  • 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

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