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The
California law allows the community spouse (the at-home spouse)
to retain a certain amount in non-exempt resources available to
the couple at the time of application. This Community Spouse Resource
Allowance (CSRA) increases every year according to the Consumer
Price Index. For 2008 the at-home spouse can keep up to $104,400
and the institutionalized spouse can keep up to $2,000 in a separate
account.
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John
and Mary have $50,000 in their joint savings account.
John enters a nursing home on February 1, 2008. John can
be eligible for Medi-Cal immediately.
Under the law, Mary can keep all of the $50,000 since
it is below $104,400.
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Separate
property, or money from an inheritance or bequest or from a pervious
marriage, will be counted in the total resources and subject to
the $106,400 limit for the community spouse and institutionalized
spouse, with the exception of IRAs and work-related pensions in
the at-home spouse's name.
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John
and Mary have $50,000 in their joint savings account,
and Mary inherited $150,000 from her mother years ago,
which she put in a CD in her own name. John enters a
nursing home on January 1, 2008.
John can be eligible for Medi-Cal in 2008 as soon as
they reduce their total resources of $200,000 to $106,400,
which is the CSRA for Mary, plus $2,000 which is the
Medi-Cal property limit for John.
The $93,600 over the limit will have to be spent down
or converted to exempt assets before John will be eligible
for Medi-Cal. However, if Mary’s income is low,
she might be able to keep all of the resources.
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Only non-exempt resources are
counted in the spouses’ combined countable resources at the
time of application for Medi-Cal. Assets such as household goods,
personal effects, jewelry, the principal residence, one car, burial
plots, burial trusts, and term life insurance are all totally excluded,
regardless of their value.
Resources that you acquire after your spouse is institutionalized
but before she or he goes on Medi-Cal are not protected and will
be counted at the time of application for Medi-Cal. However, once
your spouse is eligible for Medi-Cal, any resources acquired by
you will not affect your spouse’s Medi-Cal eligibility.
For more information about services provided by the experts at Linker Financial Group, Inc. or to schedule a brief, no charge, no obligation consultation to see if Medi-Cal Long Term Care planning is right for you, please give us a call or send us an e-mail right now.
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