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Vetoed bill targets low-income California Medi-Cal recipients

Care planning in California is something that all adults have to take seriously. This is especially true for low-income adults who are participating in or considering participating in Medi-Cal. Governor Jerry Brown has recently vetoed a measure that could have limited the seizure of assets from the estate of a person on Medi-Cal.

The measure in question is Senate Bill 1124. This measure would have limited the seizure of assets to only what it would take to cover the cost of long-term care. He did acknowledge that planning for the next generation is a good goal. He then said that the cost of this planning needs to be considered in conjunction with policy changes to the budget process.

Asset seizure came to light as part of Obamacare. This policy seems to target low-income people who don't have children. For Medi-Cal recipients who are over 55, the state can seize a variety of assets after the policyholder's death. This means that a family home can pulled out from under an estate if the person who passed away was on Medi-Cal and died while participating in the nursing home long-term care program.

Despite the fact that both the Senate and the Assembly passed the bill, budget advisors recommended that the governor veto the bill. Those advisors said that the state could lose $15 million in general fund revenues.

This issue is a stark reminder for all adults to make sure they understand all the conditions of Obamacare and other insurance programs when it comes to asset seizure. Proper estate planning and long-term care planning can help California residents to avoid having a family home liquidated from underneath those left behind.

Source: Contra Costa Times, "Gov. Brown vetoes bill limiting estate recovery for Medi-Cal enrollees" Tracy Seipel, Sep. 26, 2014

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