SACRAMENTO, CA – Changes to the eligibility requirements for Medi-Cal, California’s health insurance program for low-income residents, have provided much-needed relief for millions of beneficiaries. The adjustment, which has been phased in over the past year and a half, now allows beneficiaries to save for the future, maintain inheritances, and hold onto a modest nest egg without fear of losing coverage.
Previously, approximately 3 million Medi-Cal beneficiaries faced restrictions on the value of financial accounts and personal property they could hold while still qualifying for coverage. However, nearly 2 million of them will no longer face these limitations, bringing them on par with the approximately 12 million other beneficiaries who do not have asset limits.
While beneficiaries must still meet income thresholds to qualify for Medi-Cal, the elimination of the asset limits has simplified the application process and reduced paperwork for applicants and county workers responsible for verifying eligibility.
Advocates and legal aid attorneys have lauded the change, as it allows beneficiaries to save for emergencies, retirement, or to leave something for their children when they die, even if they require expensive long-term care. Additionally, the adjustment supports the caregiver economy by providing access to Medi-Cal’s In-Home Supportive Services program.
It’s important to note that despite the removal of asset limits, Medi-Cal beneficiaries still need to be mindful of protecting their assets should they need long-term care. However, a change in the law in 2017 restricted the state’s ability to put a claim on a beneficiary’s house or other assets after their death, provided they have taken legal steps to protect them.
The lifting of asset limits has also relieved a significant bureaucratic burden for beneficiaries and applicants, as well as for eligibility workers in county offices, who previously had to navigate and verify complex asset details for applicants.
Overall, the alteration to Medi-Cal’s eligibility requirements represents a significant step forward for millions of beneficiaries. Furthermore, the change is expected to have a positive impact on the overall well-being and financial security of those enrolled in the program.