Estate Planning for Families
27240 Turnberry Lane, Suite 200
Valencia, CA 91355

Important Facts About Medi-Cal: Treatment of Income

The basic Medi-Cal rule for nursing home residents is that they must pay all of their income, minus certain deductions, to the nursing home. The deductions include a $60-a-month personal needs allowance (this amount may be somewhat higher or lower in particular states), a deduction for any uncovered medical costs (including medical insurance premiums), and, in the case of a married applicant, an allowance for the spouse who continues to live at home if he or she needs income support. A deduction may also be allowed for a dependent child living at home.

In some states, known as “income cap” states, eligibility for Medi-Cal benefits is barred if the nursing home resident’s income exceeds $1,635 a month (for 2002), unless the excess above this amount is paid into a “(d)(4)(B)” or “Miller” trust. If you live in an income cap state and require more information on such trusts, consult an elder law specialist in your state.

For Medi-Cal applicants who are married, the income of the community spouse is not counted in determining the Medi-Cal applicant’s eligibility. Only income in the applicant’s name is counted in determining his or her eligibility. Thus, even if the community spouse is still working and earning $5,000 a month, she will not have to contribute to the cost of caring for her spouse in a nursing home if he is covered by Medi-Cal.

Medi-Cal Introduction
Resource (Asset) Rules
Treatment of Income
The Home
Protections for Healthy Spouse
Is Transferring Assets Against the Law?
The Transfer Penalty
Exceptions to Transfer Penalty
Estate Recovery
Lisa Golshani, Attorney at Law
27240 Turnberry Lane, Suite 200
Valencia, CA 91355
661-362-0770 Office
5023 N. Parkway Calabasas
Calabasas, CA 91302
818-334-2805 Office

lisa@golshanilaw.com