Common Myths about Medi-Cal:
Medicaid, which is called “Medi-Cal” in California, was signed into law by President Lyndon B. Johnson at the Truman Library in Independence, Missouri on July 30, 1965. This is part of President Johnson’s “Great Society.” It is a national program, which is administered by each state. The rules and regulations change constantly, and vary from state to state.
There are many common misconceptions about Medi-Cal that we hear from our clients.
“Someone told me that…”
We often hear stories from our clients, about Medi-Cal, which they hear from their well meaning friends and family members. These stories are often inaccurate, and frighten people into thinking that they have to exhaust all of their assets, and sell their home, before becoming eligible for Medi-Cal.
As a result, they may have sold their home or transferred assets improperly, in hopes of immediately qualifying themselves for Medi-Cal. Unfortunately, they soon find out that these transfers may have been unnecessary, and that the transfers may have created many months of ineligibility for the Medi-Cal recipient.
It is usually not a good idea to sell the home, and there are ways to protect the home from a Medi-Cal lien. And, the home is exempt for Medi-Cal qualification. If you sell the home and generate cash, and make a big transfer of the cash, without doing it properly, you will create many months of ineligibility for Medi-Cal.
“My Dad is in a nursing home now, so it is too late to do anything.”
Many family members do wait too long to contact an elder law attorney, but it is rarely too late to set up a good plan. In most cases, more assets can be preserved when the plan is set up early.
If the recipient has lost mental capacity, things become more difficult for asset protection. If the revocable living trust and financial durable powers of attorney do not have the correct elder law and asset protection language, and the recipient has lost mental capacity, we may have to resort to court involvement to protect assets. This is expensive and time consuming.
As a result, you should seek the counsel of an elder law attorney at the first signs of memory loss. A diagnosis of ALS, Alzheimers, Parkinson’s disease or cancer, or if your loved one is being discharged from the hospital, and has been told that he will need help in caring for himself, should prompt you to see an elder law attorney.
For additional information, please feel free to view our website at www.WalnutCreekElderLaw.com. You may also call us at 925-256-0298, or e-mail to lawyoung1@gmail.com Michael J. Young is an elder law attorney in Walnut Creek, CA. His practice emphasizes, elder law, long term care planning for the older client, estate planning, government benefits planning, Alzheimer Planning, VA Aid and Attendance and Medi-Cal qualification and applications.
