The Step-by-Step Guide to Protecting Your Home from Medi-Cal

Can you own a house and be on Medicaid? Does owning a home affect Medi-Cal? These are questions that every homeowner in California needs to consider.

When people need to qualify for Medi-Cal to pay for long-term care services, they soon realize that the program has strict income and resource limits.

If you own a home and need Medi-Cal, you will need to know:

1. 1. how this asset will impact your benefits and eligibility, and
   2. what will happen to your property when you pass away.

The good news is that there are ways to safeguard your home and still qualify for Medi-Cal coverage. Here is a step-by-step guide to protecting your home from Medi-Cal.

Medi-Cal, or California Medicaid, is the state’s health insurance program for Californians with low income and resources. The program is an essential resource for millions of adults who need nursing home and other long-term care. According to a recent report, Medi-Cal pays for approximately 55% of all patient days in long-term care facilities.

If I Own a House, Can I Get Medi-Cal and Avoid Selling My Home?

If you own a house, you may still qualify for Medi-Cal without selling your home. For those applying for Medi-Cal, the home can be considered a non-countable asset as long as certain conditions are met, like if a spouse or dependent still lives in the home or if the applicant intends to return there.

Understanding the rules around home ownership and Medi-Cal can help you qualify while preserving your property for future generations, even if you receive Medi-Cal benefits paid toward nursing facility expenses.

Medi-Cal Exempt Assets

When you apply for Medi-Cal, the program looks at your resources and income to determine eligibility. However, some of your personal assets will be exempt from this assessment. Some of these exempt (non-countable) assets include your primary residence and certain other resources. In other words, Medi-Cal will not count the property you use as your principal residence against you.

However, if you own other assets, they may be considered countable by Medi-Cal for determining your eligibility. The rules regarding Medi-Cal eligibility and exempt assets can be complicated, and it’s essential to have a complete understanding of them before you apply for benefits.

Can Medi-Cal Take My Home?

If you are like many people, you may be most concerned about Medi-Cal being able to take your home. Can you own a home and be on Medicaid? Can I get Medi-Cal if I own a house? As explained above, your primary home won’t be considered countable for determining your eligibility.

However, the Medi-Cal program may be able to come after your home when you pass away. This is because of something called Medi-Cal Estate Recovery. Under Medi-Cal Estate Recovery, Medi-Cal can pursue reimbursement for long-term care expenses from a recipient’s probate estate. Your probate estate is all the money, property, and assets that you own at the time of your death.

Can You Qualify for Medi-Cal if You Own a Home?

Owning a home does not automatically prevent you from being eligible for Medi-Cal benefits. For many applicants, a primary residence is a “non-countable” asset, meaning it doesn’t impact their eligibility for Medi-Cal long-term care coverage.

The rules can be complex, especially when it comes to assets like real estate. Consulting a Medi-Cal planning attorney can help you understand the nuances of keeping your home while qualifying for Medi-Cal to cover essential services, like nursing home care.

What Happens to Your Home if You’ve Received Medi-Cal Benefits for Nursing Home Care?

After a Medi-Cal recipient has received benefits for nursing home care or other services, the Medi-Cal Estate Recovery Program may seek reimbursement for Medi-Cal expenses from the individual’s estate. This often includes the primary home if the property passes through probate.

However, certain steps can shield your home from recovery, especially if a spouse, child, or other qualifying relative still lives in the home. Planning with a knowledgeable attorney can ensure that your home is protected after you’ve received Medi-Cal benefits for long-term care.

How do I Protect my Home from Medi-Cal Estate Recovery?

Here are the steps to follow to protect your home from Medi-Cal Estate Recovery:

• Step 1- Contact an experienced California Medi-Cal planning attorney. Medi-Cal is complex, and it’s essential that you have the right advice and information to protect your assets and plan for your future. Your Medi-Cal estate planning attorney can help you get the benefits you need while safeguarding your assets.
• Step 2- Learn more about how to protect your home. Your Medi-Cal planning attorney can also tell you more about the other ways you can protect your home and still qualify for coverage. For example, the program has numerous rules, some of which limit estate recovery under certain conditions. Your Medi-Cal planning attorney can help you review your situation and determine how your home may be protected through the program’s rules.

Planning for Medi-Cal

Often, when someone needs Medi-Cal, it’s because there is an immediate need. If possible, you should be planning for Medi-Cal before the need arises. Applying and qualifying for Medi-Cal takes time, and you want to be eligible for coverage before there is a health emergency.

Additionally, you will want to take time to determine the best ways to protect your home and other assets. An experienced Medi-Cal planning attorney can provide you with a step-by-step guide for protecting your home from Medi-Cal and help you plan for your eligibility.

At the Law Offices of Alice A. Salvo, we are California Medi-Cal planning attorneys with the experience you need to plan for your future. We can help you protect your home and prepare for your Medi-Cal eligibility and long-term care expenses. Please get in touch with us online or by phone to schedule an appointment today.