Fillable NOTICE REGARDING STANDARDS FOR MEDI-CAL ELIGIBILITY (Department of Health Care Services)

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NOTICE REGARDING STANDARDS FOR MEDI-CAL ELIGIBILITY (Department of Health Care Services)

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State of California—Health and
Human Services Agency
Department of Health Care Services
DHCS 7077 (12/18) ENG
NOTICE REGARDING STANDARDS FOR MEDI-CAL ELIGIBILITY
If you or your spouse is in or is entering a nursing facility, read this important message!
You or your spouse do not have to use all your resources, such as savings,
before Medi-Cal might help pay for all or some of the costs of a nursing facility.
You should be aware of the following to take advantage of these provisions of the law:
Unmarried Resident
An unmarried resident is financially eligible for Medi-Cal benefits if he or she has less
than $2,000 in available resources. A home is an exempt resource and is not
considered against the resource limit, as long as the resident states on the Medi-Cal
application that he or she intends to return home. Clothes, household furnishings,
irrevocable burial plans, burial plots, and an automobile are examples of other exempt
resources.
If an unmarried resident is financially eligible for Medi-Cal reimbursement, he or she
is allowed to keep from his or her monthly income a personal allowance of $35 plus
the amount of health insurance premiums paid monthly. The remainder of the
monthly income is paid to the nursing facility as a monthly deductible called the
“Medi-Cal share-of-cost.”
Married Resident
If one spouse lives in a nursing facility, and the other spouse does not live in a nursing
facility, the Medi-Cal program will pay some or all of the nursing facility costs as long as
the couple together does not have more than $126,420 in available assets. The
couple’s home will not be counted against this $126,420, as long as one spouse or a
dependent relative, or both, lives in the home, or the spouse in the nursing facility
states on the Medi-Cal application that he or she intends to return to the couple’s home
to live.
If a spouse is eligible for Medi-Cal payment of nursing facility costs, the spouse living at
home is allowed to keep a monthly income of at least his or her individual monthly
income or $3,161, whichever is greater. Of the couple’s remaining monthly income, the
spouse in the nursing facility is allowed to keep a personal allowance of $35 plus the
amount of health insurance premiums paid monthly. The remaining money, if any,
generally must be paid to the nursing facility as the “Medi-Cal share-of-cost.” The Medi-
Cal program will pay remaining nursing facility costs.
Under certain circumstances, an at-home spouse can obtain an order from an
administrative law judge that will allow the at-home spouse to retain additional
resources or income. Such an order can allow the couple to retain more than $126,420
in available resources if the income that could be generated by the retained resources
would not cause the total monthly income available to the at-home spouse to exceed
$3,161. Such an order also can allow the at-home spouse to retain more than $3,161
in monthly income, if the extra income is necessary “due to exceptional circumstances
resulting in significant financial duress.”
State of California—Health and
Human Services Agency
Department of Health Care Services
DHCS 7077 (12/18) ENG
An at-home spouse also may obtain a court order to increase the amount of income and
resources that he or she is allowed to retain, or to transfer property from the spouse in
the nursing facility to the at-home spouse. You should contact a knowledgeable attorney
for further information regarding court orders.
The paragraphs above do not apply if both spouses live in a nursing facility and neither
previously has been granted Medi-Cal eligibility. In this situation, the spouses may be
able to hasten Medi-Cal eligibility by entering into an agreement that divides their
community property. The advice of a knowledgeable attorney should be obtained prior
to the signing of this type of agreement.
Note: For married couples, the resource limit ($126,420 in 2019) and income limit
($3,161 in 2019) generally increase a slight amount on January 1 of every year.
Transfer of Home for Both a Married and an Unmarried Resident
A transfer of a property interest in a resident’s home will not cause ineligibility for Medi-
Cal reimbursement if either of the following conditions is met:
a.
At the time of transfer, the recipient of the property interest states in writing that
the resident would have been allowed to return to the home at the time of the
transfer, if the resident’s medical condition allowed him or her to leave the
nursing facility. This provision shall only apply if the home has been considered
an exempt resource because of the resident’s intent to return home.
b.
The home is transferred to one of the following individuals:
1.
The resident’s spouse.
2.
The resident’s minor or disabled child.
3.
A sibling of the resident who has an equity interest in the home, and who
resided in the resident’s home for at least one year immediately before the
resident began living in institutions.
4.
A son or daughter of the resident who resided in the resident’s home at
least two years before the resident began living in institutions, and who
provided care to the resident that permitted the resident to remain at home
longer.
This is only a brief description of the Medi-Cal eligibility rules; for more detailed
information, you should call your county welfare department. You probably will want to
consult with the local branch of the state long- term care ombudsman, an attorney, or a
legal services program for seniors in your area.
I have read the above notice and have received a copy.
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NOTICE REGARDING STANDARDS FOR MEDI-CAL ELIGIBILITY (Department of Health Care Services)

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Completed 23 November 2020

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