Medi-Cal Draft Regulations have been issued

The long awaited draft of the Medi-Cal regulations implementing the Deficit Reduction Act of 2005 (DRA) have been issued and are out for public comment.  Those that have assets are targeted.  To read the material changes to current law, see below. 

1)         An increase in the look-back period to 60 months

2)         The penalty period will start with the date of application and not the date of the gift

3)         Requires the applicant to disclose any interest in an annuity and requires the State of California to be names as the remainder beneficiary (for purposes of securing the recovery)

4)         The equity limit in a residence to be $750,000

The new rules take a lot of tools out of our Medi-Cal planning tool box.  If there is a long-term care need in the immediate future, planning now could be grandfathered.  Once these rules are in effect, our job as attorneys has become much tougher, more expensive to clients, and perhaps not as effective.

This entry was posted on Sunday, September 30th, 2012 at 4:02 am and is filed under Medi-Cal.