October 27, 2009
Major Changes To the Medi-Cal Laws Pending
By: Michael J. Young
Elder Law Attorney
Governor Schwarzenegger recently signed the Deficit Reduction Act (DRA) into law in California. The law has not yet taken effect, but when it does take effect, within the next several months, there will be major changes to Medi-Cal rules. These rules will affect elder law and long term care planning.
One of the major changes will be an increase in the look-back period for gifting of assets from 30 months to 60 months. Under the current law, California uses the 30-month look back period, and the period of ineligibility for Medi-Cal begins at the month of the transfer. Under the DRA rules, the look-back period is increased to 60 months. Moreover, the period of ineligibility begins after the applicant has spent down or gifted their assets, and has applied for Medi-Cal. The period of ineligibility goes forward from that date.
This is a significant and detrimental change. As a result, we are encouraging clients, who will possibly be facing placement into a nursing home within the near future, to do their long term care planning now, before the new gifting rules take effect.
Michael J. Young is an elder law attorney in Walnut Creek California. You can visit his website at www.WalnutCreekElderLaw.com