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Medi-Cal Is Lien-ing Off Family Homes

 MedicalHomes

For those who rely on Medi-Cal coverage, there’s good news. As of January 1, 2017, Medi-Cal is now also going to take care of family homes and make sure they don’t get lost in the process of payment recovery.

The state can no longer put an estate claim on the property of a Medi-Cal recipient who has passed away for payment due. If fear of losing a family home has been holding you back from enrollment, you no longer have that to worry about that.

What’s essential, however, is that the property of the Medi-Cal recipient be placed in a living trust before they pass away. A living trust is a legal document that puts an individual’s assets (like a home) into a trust from which they can benefit during their lifetime. Upon their death, the assets are then transferred to their designated beneficiaries. Your local bank is a good place to start for more information and help on where you can go to set up a living trust.

What’s important to remember is that while your family’s home is no longer at risk for a lien or repossession, Medi-Cal will still want to collect the money owed on behalf of the deceased. The state will send out an estate recovery claim for payment on any Medi-Cal benefits received that are related to nursing home care or home and community-based services. The state cannot, however, recover money owed for any basic health services like doctor visits and prescriptions.

There’s no need to stress, however, because in addition to being able to apply to have a claim waived or reduced, the state is willing and able to work with heirs to set up a monthly payment plan. No matter what, the property your family owns is now protected and will always be home sweet home.

For more details (in English and Spanish) on this new Medi-Cal Recovery law, or to find further assistance, please click here for details.