Elder care is a very pressing issue at the present time, because long-term care is very expensive. The majority of senior citizens are someday going to need living assistance, so this is something to take seriously when you are looking ahead toward the future.
You may be confident because you will qualify for Medicare when you reach the age of 65, but this program does not pay for long-term care. If you were to pay for your elder care out of your own pocket, the costs could potentially consume all or most of the resources that you intended to leave behind to your loved ones.
The Medi-Cal Program
Medicaid is a jointly administered federal/state government health insurance program for needy individuals. In the state of California, the program is called Medi-Cal. This program is not exclusively for senior citizens, but many seniors seek eligibility because Medi-Cal will pay for long-term care.
Since Medi-Cal is a need-based program, there is a limit on countable assets for seniors who are seeking eligibility to pay for long-term care. This limit is just $2,000, but everything that you own is not considered to be countable.
Your home is not a countable asset, and one vehicle that you use for transportation would not be countable. Household goods and personal belongings are not countable, and wedding rings, heirloom jewelry, and engagement rings would not be counted by Medi-Cal evaluators.
People who want to qualify for Medi-Cal often give away countable assets before they apply. This is sometimes referred to as a Medi-Cal spend down.
It would be logical to assume that you could hold on to your assets and give them to your family members if you find out that you need long-term care. The powers that be want to prevent this, so there is a 30 month look-back in the state of California. Your eligibility is delayed if you give away assets within 30 months of applying for Medi-Cal to pay for long-term care.
The duration of the penalty would be tied to the amount of the gifts. For example, if you gave away enough to pay for six months of long-term care, your eligibility for Medi-Cal would be delayed by six months. You would be forced to pay for your care out of pocket for those six months.
Obtain Detailed Information About Medi-Cal Planning
To be fully prepared for your elder years, you should brace yourself for long-term care costs so that you can get the care that you need without losing a great deal in the process.
Medi-Cal is going to be the solution for many Californians. If you would like to learn more about the program, download our special report on the subject. This report will answer most of your questions, and it will provide you with a solid foundation of information to draw from as you look ahead toward the future.
To obtain your copy of the report, which is being offered free of charge, click this link: San Jose CA Medi-Cal Planning.