In 2024, a new California law changed how Medi-Cal — the state’s Medicaid program — determines eligibility. This major change affects who qualifies for Medi-Cal, which serves low-income individuals, including families, seniors, people with disabilities, children in foster care, pregnant women, and childless adults with incomes below 138% of the federal poverty level. Medi-Cal benefits include:
- Ambulatory patient services
- Emergency services
- Hospitalization
- Maternity and newborn care
- Mental health and substance use disorder treatment
- Dental (Denti-Cal)
- Vision
- Long-term care and support
Changes in Asset Considerations
Before 2024, personal assets impacted Medi-Cal eligibility. People often hired estate planning attorneys to create irrevocable trusts, transferring assets to these trusts to qualify for Medi-Cal. This complicated process aimed to make individuals appear poor enough to receive assistance. However, using irrevocable trusts meant losing control over those assets, making it a serious and often irreversible decision.
Current Eligibility Criteria
Now, you can qualify for Medi-Cal if your income is below 138% of the federal poverty level, or if you are:
- 65 or older
- Blind
- Disabled
- Under 21
You can keep assets in your personal name or in a revocable living trust, which you control and benefit from. Additionally, the new law no longer considers immigration status for eligibility.
Estate Recovery Considerations
Despite these changes, Medi-Cal estate recovery is still a possibility. California’s laws require the Medi-Cal program to seek repayment from the estates of deceased beneficiaries through the probate process. However, you can avoid probate, and thus Medi-Cal recovery, by establishing a revocable living trust and transferring assets to it. Since these assets are not in your personal name, there is nothing to probate, and Medi-Cal cannot recover them.
If you would like to learn more about avoiding Medi-Cal estate recovery, please book a call with William Ha Law.