Elder Law / Medi-Cal Planning

The high cost of long-term care has made planning a critically important issue for most middle class seniors and their families.  In fact, most seniors will likely require some form of long-term care. Sadly, many of them are unprepared for the significant financial burdens it places on their family’s hard earned savings.  Financial devastation looms large for a family facing ongoing care at a rate of $10,000 or more per month.
 
Long-Term Care Options
While some seniors are able to afford private pay care, the cost of long-term care will wipe out savings of all but the wealthiest families in a matter of years.  Those who have planned ahead by purchasing long-term care insurance have a degree of certainty and peace of mind, knowing that they have a lesser need to rely on other sources in the future.  Unfortunately, many can’t afford the high cost of long term care insurance or worse, because of age of medical condition cannot qualify for long term care insurance altogether.  If you do have long-term care insurance, you should be aware of what your policy covers.  Many policies have high deductibles or provide for only a short period of care in facility.  In fact, many who have long-term care insurance still have to resort to Medicaid to pay for their care.
 
Medi-Cal Eligibility
The other option to pay for care is Medi-Cal.  A joint federal-state program, Medi-Cal provides medical assistance to low-income individuals, including those who are 65 or older, disabled or blind.  Medi-Cal is the single largest payer of nursing home bills in America and serves as the option of last resort for people who have no other way to finance their long-term care.  Although Medi-Cal eligibility rules vary from state to state, federal minimum standards and guidelines must be observed.
 
While Medi-Cal eligibility with respect to long-term care was not difficult in the past, there has been a steady drift towards more complex and restrictive rules, the latest being the Deficit Reduction Act of 2005 (referred to as the "DRA") which became federal law in 2006.  In 2008, SB 483 was enacted in California, which incorporated certain provisions of the DRA.  However, the law adopting provisions of the DRA will not be implemented until final regulations are filed with the California Secretary of State.  It is anticipated that these regulations will be finalized in the near future.  This provides a limited opportunity for families to plan under the current and more favorable Medi-Cal rules.

The changes resulting from California's adoption of the DRA will result in complex eligibility requirements for those in need of Medi-Cal benefits. 

In any event, whether planning right now or after implementation of the DRA, there are many rules and regulations which must be considered, including look-back periods, income caps, transfer penalties and waiting periods.  Thus, it is a good idea to consult with a competent and knowledgeable elder law attorney.
 
Our law firm has the experience and the expertise to help avoid the financial ruin associated with the high cost of long-term care.  Contact us today to start the process of understanding the issues surrounding Medi-Cal eligibility and to implement the planning and application process.