Medicare-Medicaid Pay-Down of Assets
State law and regulations impose income and asset limits on persons applying for Medicaid.
Effective January 1, 2025, there is no maximum asset amount for Medi-Cal recipients or applicants..
Transfer of property prior to January 1, 2025 are still considered, except that transfers that occur in 2025 are not a part of the look-back period. A transfer shall result in ineligibility for Medi-Cal if:
The property transferred was exempt;
The net market value of the property would not result in ineligibility;
Adequate consideration was received;
The transfer was to satisfy a legal debt;
The transfer was to reimburse someone other than a responsible relative for care or benefits provided on the basis of an agreement or understanding that reimbursement would be made;
Foreclosure or repossession of the property was imminent at the time of transfer, and there is no evidence of collusion; or
The transfer was made without adequate consideration but the applicant or beneficiary provides convincing evidence to overcome the presumption that the transfer was for the purpose of establishing eligibility or reducing the share of cost.
After a determination of ineligibility due to the transfer of property, there shall be a period of ineligibility for the time during which the net market value of the property at the time of transfer, less consideration received, would have supported the applicant or beneficiary and the applicant's or beneficiary's family.
California imposes no income limitations for Medi-Cal payments for nursing home care. Individuals who are otherwise eligible for Medi-Cal must pay a share of their income towards the costs of care, and Medi-Cal pays the portion that the recipient cannot pay.
Cal. Code Regs. tit. 22, §§ 50408
50409
50411
Cal. Dept of Health Care Services, Transfers of Assets Beginning January 1, 2024, and Treatment of Transfers Occurring Prior to January 1, 2024 (Nov. 30, 2023)
Cal. Health Care Foundation, Medi-Cal Now Considers Income, Not Assets, of Enrollees (Apr. 18, 2024)