Long-Term Care Becomes More Affordable 2023 Medi-Cal Update

California recently changed its rules regarding eligibility for Medi-Cal benefits. This is great news for those who need care in a Skilled Nursing Facility. While federal laws limit the amount of “non-exempt” assets a Medi-Cal (Medicaid) recipient may have to only $2000.00, California recently increased their asset limit rules significantly. The “resource” limit for a California Medi-Cal applicant increased from $2,000.00 to a whopping $130,000.00. If the individual is married, the well-spouse of the applicant may have an additional $148,620.00 in non-exempt assets. This extra $148,620.00 is called the Community Spouse Resource Allowance (CSRA), and allows a married couple to have $278,620.00 of “non-exempt” assets when one spouse needs care in a Skilled Nursing Facility. IRA’s, 401(k)’s, and the primary residence are still “exempt” and therefore not counted when applying for this important benefit. 
This is a massive change, and unique to California. Individuals who suffer catastrophic medical events may now keep more of their nest egg while getting the care they need. And, if the Medi-Cal applicant’s assets exceed the new higher California limit, there are still legal planning tools available to protect assets. What legal planning tools? That depends on the circumstances, as each situation is different. California remains very lenient in Medi-Cal planning and asset protection, unlike other states. However, the planning and asset protection must be done correctly, in compliance with the complex rules, and disclosed to Medi-Cal for their review and approval.
Even more drastic changes are planned for 2024 in California, making expensive long-term care in a Skilled Nursing facility now within reach for many.
For an appointment to discuss Long-Term Care issues, Estate Planning, or After-Death issues, please contact the McNamara Law Firm at (661) 287-3260, or visit www.theMcNamaraLawFirm.com.