2015 CA Medi-Cal Quick Reference Guide

The State of California has changed some of the Medi-Cal qualification figures and requirements for 2015. A brief listing of these changes and requirements is set forth below:

Community Spouse Resource Allowance (CSRA)


This is the amount that the community, or (at home) well spouse can retain in liquid assets. This amount does not include exempt assets, such as the home and qualified accounts, such as IRA’s.

Minimum Monthly Maintenance Needs Allowance (MMMNA)


This is the minimum amount of income the well spouse can keep.

Average Private Pay Rate – Divestment Penalty Divisor – (APPR)


This is the amount the State pays to nursing homes on the Medi-Cal program, minus a share of cost by the applicant. This figure is also used to calculate penalty periods of ineligibility for Medi-Cal.

Applicant Resource Allowance


The applicant can keep this amount in cash, checking, etc.

Monthly Personal Needs Allowance


The amount of income the ill person is allowed to keep.


Financial Durable Powers of Attorney for Baby Boomers and Seniors Can Now Provide for Long Term Care Planning and Asset Protection

Financial Durable Powers of Attorney (Fin. DPA’s) for Baby Boomers and Seniors can provide for asset protection and government benefits planning. The language we use in Fin. DPA’s for long term care planning for baby boomers and seniors is very different from the language we see in the plain vanilla Fin. DPA’s which most people have.

Baby Boomers and seniors usually want to get our ducks in a row for possible qualification for Medi-Cal, which can help pay for our skilled nursing home stay if we run out of Medicare days. In addition, for wartime veterans, we want to get our ducks in a row for possible qualification for the VA Aid & Attendance Pension Benefit which can help pay for in home care and the cost of assisted living facilities. If we lose mental capacity, these extraordinary powers will allow your attorney in fact in your Fin. DPA, such as your spouse or child, to follow through with asset protection and government benefits planning according to your wishes.

The Uniform Statutory Form Power of Attorney that many people already have, does not contain the required language for asset protection. And, the majority of attorney created Fin. DPAs do not have this requisite language. As a result, if you become incapacitated and you do not have the requisite language in your Fin. DPA, your agent may be powerless to follow your wishes for asset protection.

For instance, we may want to transfer (transmute) the title of our home from the ill spouse to the well spouse, or to a child, during our lives, for asset protection purposes. For many of our clients, the home is their largest asset. Most of our clients want their home to ultimately transfer to their children without government liens attaching. They also want their children or heirs to receive the home with a full step up in basis when they die, so that there will be no capital gains to pay if the home is sold upon the death of the maker of the Fin. DPA.

Most Fin. DPAs do NOT have this specialized language which is required to accomplish these goals . In addition, for long term care planning, the language in the Fin. DPA is coordinated with the language in the revocable living trust, to provide additional options for asset protection. You should contact your elder law attorney for advice for long term care planning and to review your existing estate plan.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.


Getting Your Ducks In A Row Before a Crisis Occurs

You should get your ducks in a row long before a crisis occurs, especially where your health and finances are concerned. Many of our clients come to see us when a crisis is occurring. For instance, their spouse or loved one is in the hospital or has just entered a skilled nursing facility. At this stage the planning is usually more difficult, and we may be facing memory issues of the ill person. It may also be more difficult to preserve the home as a legacy for the clients’ beneficiaries. The home is many times our clients’ largest asset.

As part of long term care planning, we plan how various stages of care will be paid for and determine what assets and resources are available. We proceed to get our ducks in a row to protect assets. We also line our ducks up for obtaining Medi-Cal to pay for the skilled nursing facility and the VA Aid & Attendance Pension Benefit to pay for in home care or an assisted living facility. Gifting and spending issues for Medi-Cal and VA are considered. The longer we have to do long term care planning, the easier it is for all concerned. In addition, your peace of mind can be assured earlier on. 

FAMILY DYNAMICS: When we are able to do pre-planning for our clients, we can better take into account issues concerning family dynamics. We need to know which family members are helping the ill person, and who can be relied upon when help is needed. We can offer suggestions for the well spouse for her care for the ill spouse when he comes home. We will be better able to find out if there is serious infighting and resentments among family members. When a crisis occurs, these dynamics become intensified.

LEGAL DOCUMENTS: Are the legal documents up to date? If they are, you are in a tiny minority. If you have not gone to an elder law attorney in the last several years, your documents are probably not up to date. There is specialized language that can be utilized for asset protection and for government benefits planning in the various documents. For instance, if we want to preserve the home and protect it from a Medi-Cal lien, and the ill person has severe memory issues, we may not be able to proceed to transfer the home to the well spouse or a child without going to court. Most revocable living trusts and financial durable powers of attorney do not contain this specialized asset protection language.

Pre-planning will also allow us to discuss any changes that may be needed in the trust, will, financial durable power of attorney and other estate planning documents. Family dynamics are always changing with the occurrence of deaths, divorces, children who are themselves in need of care, second marriages, etc.

Written Michael J. Young, elder law attorney, Medi-Cal attorney, senior law attorney and probate attorney in Walnut Creek, CA and former in-house counsel for title insurance companies. Mr. Young is a Medi-Cal attorney and is VA Certified.  www.WalnutCreekElderLaw.com LawYoung1@Gmail.com 1931 San Miguel Dr., Suite 220, Walnut Creek, CA 94596. 925-256-0298. Mr. Young serves Contra Costa and Alameda Counties, including the cities of Walnut Creek, Alamo, Danville, Concord, Brentwood, Pleasant Hill, Antioch, Clayton, etc. Mr. Young advises clients regarding Probates, Probates with Real Estate, Medi-Cal, nursing homes, asset protection, the VA Aid and attendance pension benefit, and long term care planning. Mr. Young is an Elder Law Attorney and Probate Attorney with offices in Walnut Creek, CA. Walnut Creek Elder Law Attorney, Walnut Creek Probate Attorney. Senior Law Attorney

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