Will i lose my medi-cal if i sell my house?
You can move out of the home, rent it, or sell it, all without affecting your spouse's Medi-Cal eligibility.
The Medi-Cal "Look-Back" period in California is 30 months. "Transfer" means an outright gift or a "sale" made at less than "fair market value." If a disqualifying transfer of property is made, Medi-Cal will calculate the period of ineligibility for nursing facility level of care.
Phase I, to be implemented July 1, 2022, will increase the asset limit to $130,000 per individual, and $65,000 for each additional household member.
When you apply for Medi-Cal, your home is exempt as long as you state that you're going to return to it, so its value is not considered when they determine your assets.
A personal injury settlement will not cause a cancellation or have any other adverse effects on an injured party's Medi-Cal coverage. Rather, the program is structured like all other health insurance such that an injured accident victim will not recover double benefits for the same injuries.
The State may make a claim against your estate for the amount of the Medi-Cal benefits paid or the value of the estate, whichever is less. An Estate Planning Attorney who specializes in Medi-Cal Planning can help prevent this from happening.
Starting January 1, 2024, assets will no longer be counted. Persons on these Medi-Cal programs will be able to save money for an emergency, for retirement, for a down payment on a car, or for any needs a person may have in excess of the current asset limit. Q: Is there anything Medi-Cal enrollees need to do?
Property used as a home is exempt (not counted in determining eligibility for Medi-Cal).
If your income is too high for Medi-Cal, you may qualify to purchase health insurance through Covered California. Covered California offers “premium assistance.” It helps lower the cost of health care for individuals and families who enroll in a Covered California health plan and meet income rules.
Household size | Asset limits |
---|---|
1 person | $130,000 |
2 people | $195,000 |
3 people | $260,000 |
4 people | $325,000 |
What part of a house is an asset?
Your home falls in the asset category even if you have not paid it entirely off. The value assigned to your home can be the amount you paid to purchase it, the taxable value or the current market value based on how other houses are selling in your neighborhood.
Number of Persons Living in Household | Monthly Gross Household Income | Annual Gross Household Income |
---|---|---|
1 | $2,430 | $29,160 |
2 | $3,287 | $39,440 |
3 | $4,143 | $49,720 |
4 | $5,000 | $60,000 |
Yes, a person who had part or all of their medical care covered under California MediCal has to pay back MediCal at the time of settlement from the settlement funds. If not, then MediCal can go after the person legally to pursue those funds.
Since the definition of “estate” is now limited to a decedent's probate estate only, the Department may not seek reimbursement from any non-probate assets. For example, it would not be permitted for the Department to seek Medi-Cal estate recovery from the living trust assets of a decedent.
In-kind income refers to assistance in food, housing, utilities, clothing, etc. that is not provided by a relative. It only will count as income if the entire need is provided for. For example, completely free housing would count, but bringing hot meals a couple of times a week would not count.
Assets Subject to the California Probate Court
Probate assets include any personal property or real estate that the decedent owned in their name before passing. Nearly any type of asset can be a probate asset, including a home, car, vacation residence, boat, art, furniture, or household goods.
One way to avoid probate in California is to use a living trust. A living trust is a legal document that allows you to transfer ownership of your assets to another person. This means that your assets will not go through probate when you die.
The most significant change is the increase in the California Medi-Cal asset limit, which increased from $2,000 to $130,000 for single recipients who are disabled or over age 65, effective July 1, 2022. Additional increased limits will apply to families and to couples who need long-term care services for one spouse.
You meet assets requirements for Medi-Cal. This Medi-Cal program exempts all Internal Revenue Service (IRS) approved retirement accounts, such as employer sponsored 401k, 403b accounts, or individual retirement accounts (IRAs) authorized in the IRS codes.
Can you have Medi-Cal in two states?
Like the other programs we have covered, you cannot be part of Medicaid in two states at one time. The good news is that you're allowed to apply for Medicaid in your new state immediately after moving. Be sure to plan ahead and apply quick to help you avoid a lapse in benefits.
If you have private health insurance, you can still qualify for Medi-Cal. Members who already have insurance can add Medi-Cal coverage to their existing plan. Your provider will first bill your private insurance, and then Medi-Cal will pay for any additional services it covers.
Medi-Cal is the health care insurance program for low-income individuals who live in California. Other states call their program Medicaid. You must financially qualify for Medi-Cal. Most single individuals will qualify for Medi-Cal if there income is under $1,676 per month.
Older Adult Expansion | En Español | 漢語
Beginning May 1, 2022, a new law in California will give full scope Medi-Cal to adults 50 years of age or older and immigration status does not matter. All other Medi-Cal eligibility rules, including income limits, will still apply.
The Pickle Amendment to section 503 of Public Law 94-566 of 1976 established a category of Medicaid eligibility for persons who may have lost eligibility to Supplemental Security Income due to a Social Security Title II Cost of Living Adjustment.
Capital assets are significant pieces of property such as homes, cars, investment properties, stocks, bonds, and even collectibles or art.
Liabilities are anything you owe money on. A car loan, home mortgage, or even child support obligations are all liabilities that should also be included in your overall net worth.
Bottom Line. Since an asset is cash or something that can be converted to cash, a checking account is considered an asset as long as it has a positive value. If your checking account is overdrawn, you owe your bank or credit union money, which makes it a liability.
Starting January 2023, Medi-Cal health coverage for most remaining dually eligible beneficiaries changed from Fee-For-Service (FFS) Medi-Cal to Medi-Cal Managed Care. Medi-Cal managed care enrollment does NOT affect a beneficiary's Medicare providers or Medicare Advantage plan.
The Patient Is Ultimately Responsible if the Bills Exceed
If your medical bills exceed the settlement you've negotiated after an auto-accident, unfortunately, you're on your own. The injured is responsible for the bills that exceed the amount fixed in the negotiation process.
What is a notice of lien for Medi-Cal?
If the injured party is Medi-Cal eligible, DHCS will send a "Notice of Lien" asserting its recovery rights within 30 days of the referral. If the injured party is not currently Medi-Cal eligible, DHCS may send notification stating the Medi-Cal status will be rechecked for retroactive eligibility in 90 days.
Medical Debt Statute of Limitations by State | |
---|---|
State | Medical debt expiration timeline |
California | 4 years |
Colorado | 6 years |
Connecticut | 6 years |
The Department of Health Care Services (DHCS) may waive its claim if payment of the claim would cause a substantial hardship. Any request for a substantial hardship waiver must be submitted to DHCS within 60 days of the date on the DHCS Estate Recovery claim letter.
Medi Cal Recovery And Special Needs Trusts – A Special Needs Trusts [“SNT”] allows the trust's Special Needs Beneficiary to remain eligible for needs based Medi-Cal benefits while receiving supplemental distributions from the SNT; these cover goods and services not paid for by Medi-Cal benefits.
Upon the death of a taxpayer, income is taxed either on the taxpayer's final return, on the return of the beneficiary who acquires the right to receive the income, or on the estate's or a trust's income tax return.
California offers two ways to get health coverage. They are “Medi-Cal” and “Covered California.” Both programs use the same application.
MAGI Medi-Cal uses federal taxable income, not gross income, when determining the income amount to use in the eligibility determination. This means that certain pre-tax deductions are subtracted from the gross income by an employer or other income source outside of the MAGI determination.
An important note: For long-term care Medicaid, there is a 60-month look back period (30-months in California). This is the length of time in which Medicaid “looks back” on all past asset transfers to ensure no assets were gifted or sold for less than fair market value.
The “Name on the Check Rule” is a common guideline used by Medicaid in determining who owns income. It basically stands for the premise that the income belongs to the person whose name is on the check. If a check is made payable to a particular individual, that individual is considered the owner of the income.
In 2023, the MMNA in CA is $3,715.50 / month. If a non-applicant's monthly income is under this amount, income can be transferred to them from their applicant spouse to bring their income up to $3,715.50.
What is California Medi-Cal changing to in 2023?
On January 1, 2023, Cal MediConnect plans transitioned to Medicare Medi-Cal plans (MMPs or Medi-Medi plans) provided by the same companies that provided Cal MediConnect plans. These Medi-Medi plans are designed to coordinate care for people with both Medicare and Medi-Cal.
The most significant change is the increase in the California Medi-Cal asset limit, which increased from $2,000 to $130,000 for single recipients who are disabled or over age 65, effective July 1, 2022. Additional increased limits will apply to families and to couples who need long-term care services for one spouse.
The most common form of Medi-Cal is Modified Adjusted Gross Income (MAGI) Medi-Cal. It uses tax rules to see if you qualify. Non-MAGI Medi-Cal is Medi-Cal that uses other rules to count property, household income, and size to see if you qualify.
The Medi-Cal Asset Protection Trusts are designed to legally transfer assets that would otherwise disqualify a person from receiving benefits and use the State Medi-Cal rules so that the assets will not count or make the penalty from the transfer minimized or eliminated.
References
- https://justiceinaging.org/wp-content/uploads/2022/05/Medi-Cal-Asset-Limit-Elimination-and-Older-Adult-Expansion-FAQ.pdf
- https://www.medicaidannuity.com/familiar-name-check-rule/
- https://www.bookmyforex.com/blog/highest-currency-in-the-world/
- https://www.holidayextras.com/travel-money/best-time-to-exchange-travel-money.html
- https://convera.com/blog/foreign-exchange/what-is-a-cross-rate-how-to-derive-one/
- https://www.forbes.com/advisor/money-transfer/highest-currencies-in-the-world/
- https://www.investopedia.com/terms/r/reciprocal-currency.asp
- https://www.forbes.com/advisor/money-transfer/currency-converter/usd-gbp/
- https://www.imf.org/external/pubs/ft/wp/2003/wp03200.pdf
- https://www.quora.com/What-are-the-advantages-and-disadvantages-of-a-higher-exchange-rate-for-foreign-currency
- https://www.sofi.com/learn/content/how-much-is-a-dollar-worth/
- https://turbotax.intuit.com/tax-tips/family/death-in-the-family/L5albFXM4
- https://fastercapital.com/content/Cross-rate--Cross-Rates-and-the-Middle-Rate--A-Complex-Web.html
- https://www.investopedia.com/terms/c/crossrate.asp
- https://www.dhcs.ca.gov/services/medi-cal/eligibility/Documents/Asset-Limit-Changes-Non-MAGI/Eligibility-and-Enrollment-Plan-Asset-Test-Changes-for-Non-MAGI-MC.pdf
- https://world101.cfr.org/global-era-issues/monetary-policy-and-currencies/understanding-currencies-and-exchange-rates
- https://www.solosuit.com/posts/medical-debt-statute-limitations-by-state
- https://www.motilaloswal.com/blog-details/which-currencies-have-a-greater-value-than-the-us-dollar-and-why/20716
- https://thirdspacelearning.com/us/math-resources/topic-guides/ratio-and-proportion/how-to-calculate-exchange-rates/
- https://files.medi-cal.ca.gov/pubsdoco/newsroom/newsroom_32081.aspx
- https://www.investopedia.com/trading/factors-influence-exchange-rates/
- https://www.thetravel.com/countries-where-the-us-dollar-is-the-strongest/
- https://www.dhcs.ca.gov/services/ltc/Documents/Medi_CalQandA.pdf
- https://www.cmcmarkets.com/en/learn-forex/16-strongest-currencies-in-the-world
- https://corporatefinanceinstitute.com/resources/foreign-exchange/cross-rates/
- https://www.dhcs.ca.gov/formsandpubs/forms/Forms/MCED/myMediCal_Digital_Version.pdf
- https://homework.study.com/explanation/the-implicit-exchange-rate-between-two-currencies-which-are-both-quoted-in-some-third-currency-is-called-the-a-euro-rate-b-depositary-rate-c-multiplex-rate-d-london-interbank-rate-e-cross-rate.html
- https://en.wikipedia.org/wiki/Money_changer
- https://www.goamplify.com/blog/homebuying/is-owning-a-home-an-asset-or-liability/
- https://www.compareholidaymoney.com/travel-money/us-dollars
- https://www.santander.com/en/stories/devaluation
- https://www.usbank.com/customer-service/knowledge-base/KB0235786.html
- https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-open-economy-international-trade-and-finance/exchange-rates/a/lesson-summary-exchange-rates
- https://www.linkedin.com/pulse/could-dollar-backed-gold-today-valentin-komarovskiy-mba
- https://www.americanexpress.com/en-us/credit-cards/credit-intel/should-you-pay-in-local-or-home-currency-when-traveling/
- https://smartasset.com/investing/what-does-it-mean-to-have-a-strong-currency
- https://www.investopedia.com/terms/c/cross-currency-swap.asp
- https://courses.lumenlearning.com/suny-microeconomics/chapter/reading-strengthening-and-weakening-currency/
- https://www.expat.hsbc.com/international-banking/what-makes-exchange-rates-move/
- https://learn.robinhood.com/articles/2q4o0SZxjeXyihnQ9E417q/what-is-a-currency-exchange/
- https://www.madisontrust.com/information-center/visualizations/strongest-and-weakest-currencies-in-world-compared-to-us-dollar/
- https://bridgetmackaylaw.com/blog/can-qualify-medi-cal-home/
- https://la-lawcenter.com/what-is-a-california-medi-cal-asset-protection-trust/
- https://www.investopedia.com/terms/c/crosscurrency.asp
- https://smartasset.com/checking-account/is-a-checking-account-considered-an-asset
- https://www.forbes.com/uk/advisor/investing/what-a-weak-pound-means-for-your-money/
- https://www.investopedia.com/terms/c/capitalasset.asp
- https://www.fidelity.com/learning-center/trading-investing/strong-dollar
- https://www.medicaidplanningassistance.org/question/does-medicaid-check-your-bank-account/
- https://renew.org/is-gambling-a-sin/
- https://www.dhcs.ca.gov/formsandpubs/forms/Forms/MC%20Information%20Notices/MC007ENG(0414).pdf
- https://www.investopedia.com/ask/answers/06/makingmoneytradingcurrency.asp
- https://www.toptal.com/finance/interim-cfos/foreign-exchange-risk
- https://keystone-law.com/medi-cal-estate-recovery
- https://www.imf.org/external/np/fin/ert/
- https://en.wikipedia.org/wiki/List_of_currencies_in_the_Americas
- https://en.wikipedia.org/wiki/Exchange_rate
- https://aliceblueonline.com/currency-trading-time-in-india/
- https://www.bloomberg.com/news/articles/2024-01-11/5-travel-destinations-where-your-dollar-will-stretch-furthest-in-2024
- https://www.thebalancemoney.com/how-to-read-and-calculate-exchange-rates-1978919
- https://www.gwcu.org/faq/article/what-are-assets-and-liabilities
- https://www.forbesindia.com/article/explainers/highest-valued-currencies-world/85581/1
- https://www.reuters.com/plus/how-a-strong-dollar-affects-international-currencies-and-commodities
- https://www.bound.co/blog/know-about-currency-swaps
- https://www.dhtrustlaw.com/what-assets-are-subject-to-probate-in-california/
- http://www.canhr.org/factsheets/medi-cal_fs/html/fs_medcal_your_home.htm
- https://www.investopedia.com/articles/economics/09/how-us-benefits-when-dollar-falls.asp
- https://internationalservices.hsbc.com/life-abroad/7-fx-tips-to-save-money/
- https://www.forbesindia.com/article/explainers/top-10-cheapest-currencies-world/85939/1
- https://www.dhcs.ca.gov/provgovpart/Pages/Cal-MediConnect-to-D-SNP-Transition.aspx
- https://www.healthforcalifornia.com/covered-california/health-insurance-companies/medi-cal/apply
- https://www.investopedia.com/ask/answers/041515/how-does-balance-trade-impact-currency-exchange-rates.asp
- https://www.dhcs.ca.gov/Documents/myMediCal.pdf
- https://www.investopedia.com/articles/forex/053115/understand-indirect-effects-exchange-rates.asp
- https://corporatefinanceinstitute.com/resources/foreign-exchange/cross-currency-swap/
- https://www.usbank.com/investing/financial-perspectives/market-news/the-recovering-value-of-the-us-dollar.html
- https://www.usnews.com/banking/articles/where-is-the-best-place-to-exchange-foreign-currency
- https://www.bankofamerica.com/foreign-exchange/foreign-exchange-rates-faq/
- https://www.goabroad.com/articles/intern-abroad/the-1-2-3-of-foreign-currency-when-how-to-exchange
- https://www.linkedin.com/pulse/foreign-currency-dos-donts-aaa
- https://bestdiplomats.org/why-uk-pound-is-strong/
- https://www.dhcs.ca.gov/formsandpubs/forms/Forms/MCED/PUB10.pdf
- https://fredblog.stlouisfed.org/2023/09/strong-and-weak-currencies/
- https://www.oklahoman.com/story/news/2010/01/25/why-did-jesus-drive-the-money-changers-out-of-the-temple/61297276007/
- https://www.medicaidplanningassistance.org/medicaid-eligibility-california/
- https://www.quora.com/Is-it-necessary-to-exchange-money-for-euros-before-traveling-to-Europe-or-can-you-use-US-dollars
- https://www.cmegroup.com/articles/2023/cross-currency-basis-watch.html
- https://lsnc.net/self-help/health/do-i-qualify-medi-cal
- https://www.benefits.gov/news/article/461
- https://www.shareindia.com/knowledge-center/currency-trading/foreign-exchange-rate
- https://www.clearestate.com/en-us/blog/how-to-avoid-probate-in-california
- https://finance.cornell.edu/treasurer/cash-management/processinginternational/exchangerates
- https://www.investopedia.com/articles/investing/090215/3-reasons-why-countries-devalue-their-currency.asp
- https://tipalti.com/currency-management-hub/foreign-exchange-risk/
- https://dennisfordhamlaw.com/medi-cal-recovery-and-special-needs-trusts/
- https://ellisinjurylaw.com/los-angeles-personal-injury-attorney/does-a-personal-injury-settlement-affect-medi-cal/
- https://fiscaldata.treasury.gov/datasets/treasury-reporting-rates-exchange/
- https://economictimes.indiatimes.com/definition/exchange-rate
- https://www.bis.org/events/cpmi_ptfop/proceedings/paper8.pdf
- https://www.schwab.com/learn/story/where-us-dollar-may-be-headed-2024
- https://www.visualcapitalist.com/these-maps-show-where-a-dollar-goes-furthest-in-the-u-s/
- https://www.investopedia.com/terms/e/exchangerate.asp
- https://www.avatrade.com/education/trading-for-beginners/currency-strength
- https://www.dhcs.ca.gov/services/Pages/TPLRD_PIP_FAQ.aspx
- https://phoonglaw.com/what-happens-when-medical-bills-exceeds-settlement-in-sf/
- https://www.kotaksecurities.com/currency/what-is-currency-appreciation-and-what-causes-it/
- https://www.rba.gov.au/education/resources/explainers/exchange-rates-and-their-measurement.html
- https://www.quora.com/Can-you-negotiate-the-exchange-rate-for-larger-transfers
- https://www.dhcs.ca.gov/services/Pages/Statewide-Medi-Cal-Managed-Care-Enrollment-for-Dual-Eligible-Beneficiaries.aspx
- https://www.hostmerchantservices.com/articles/exchange-foreign-currency/
- https://www.investopedia.com/articles/forex/09/currency-cross-triangulation.asp
- https://www.investopedia.com/articles/personal-finance/082114/best-places-exchange-currency.asp
- https://www.compareholidaymoney.com/travel-money/euros
- https://resources.bankofamerica.com/direct/render-resource/652b1758b1204e679972c572580864a0
- https://www.dbs.com/digibank/in/articles/pay/rbi-guidelines-for-foreign-exchange-transactions
- https://www.x-rates.com/table/?from=USD&amount=1
- https://elderlawcalifornia.com/medi-cal-planning/how-to-avoid-the-medi-cal-estate-recovery/
- https://www.dhcs.ca.gov/services/Pages/TPLRD_ER_cont.aspx
- https://www.wsj.com/buyside/personal-finance/best-exchange-rate-99ec1cbb
- https://www.econlowdown.org/v3/public/is-a-strong-dollar-better-than-a-weak-dollar
- https://www.bendigoadvertiser.com.au/story/6490980/the-best-time-for-travellers-to-buy-us-dollars-before-a-trip/
- https://www.worldremit.com/en/blog/finance/exchange-rates
- https://marinbar.org/news/article/?type=news&id=706
- https://www.dhcs.ca.gov/services/medi-cal/Pages/DoYouQualifyForMedi-Cal.aspx
- https://www.markedbyteachers.com/international-baccalaureate/economics/advantages-and-disadvantages-of-high-and-low-exchange-rates-of-a-fixed-and-floating-exchange-rate-system.html
- https://www.investopedia.com/ask/answers/06/strongweakdollar.asp
- https://markets.ft.com/data/currencies/tearsheet/summary?s=gbpeur
- https://www.investopedia.com/articles/forex/080613/effects-currency-fluctuations-economy.asp
- https://www.dhcs.ca.gov/services/medi-cal/eligibility/Pages/Asset-Limit-Changes-for-Non-MAGI-Medi-Cal.aspx
- https://www.dhcs.ca.gov/services/medi-cal/eligibility/letters/Documents/21-04.pdf
- https://www.imf.org/en/Publications/fandd/issues/2019/06/what-makes-the-US-100-bill-so-popular-currency
- https://humanservices.ucdavis.edu/course/pickle-eligibility-medi-cal-program
- https://corporatefinanceinstitute.com/resources/economics/how-is-currency-valued/
- https://ca.db101.org/ca/programs/health_coverage/medi_cal/faqs.htm
- https://www.blanelaw.com/faqs/do-i-have-to-pay-back-medical-from-my-settlement.cfm
- https://ies.princeton.edu/pdf/S50.pdf
- https://smartasset.com/checking-account/5-cheap-ways-to-exchange-currency
- https://www.investopedia.com/articles/investing/101215/how-fed-fund-rate-hikes-affect-us-dollar.asp
- https://www.dhcs.ca.gov/services/medi-cal/eligibility/Pages/OlderAdultExpansion.aspx
- https://study.com/academy/lesson/currency-appreciation-depreciation-effects-of-exchange-rate-changes.html
- https://www.bible.com/bible/compare/MAT.21.12-13
- https://wise.com/us/currency-converter/usd-to-gbp-rate?amount=100
- https://www.cls-group.com/products/settlement/cross-currency-swaps/
- https://www.worldremit.com/en/blog/finance/how-to-calculate-exchange-rates
- https://bridgetmackaylaw.com/blog/medi-cal-treat-income/