Can Medi-Cal ask for money back?

Asked by: Landen Schneider  |  Last update: September 3, 2025
Score: 4.1/5 (14 votes)

Medi-Cal is California's free or low-cost medical assistance program for low-income people. What is Medi-Cal Recovery? When a Medi-Cal recipient dies, the state can seek repayment for the cost of services received, including insurance premiums paid and payments made to managed care plans.

Do people have to pay back Medi-Cal?

The Medi-Cal program must seek repayment from the estates of certain deceased Medi-Cal beneficiaries. Repayment only applies to benefits received by these beneficiaries on or after their 55th birthday and those who owned assets at the time of death.

Will Medicaid make me pay them back?

If you save any of the lump sum payment into the months after you received it, and it pushes your resources above the Medicaid resource limit, you can be held liable to repay Medicaid for services you receive in all the months you are over the resource limit.

Can Medi-Cal take money from a trust?

If the Medi-Cal beneficiary's estate avoids probate, due to being small or using non probate assets (e.g., trusts and/or death beneficiary assets) then there is no Medi-Cal Estate Recovery. Trusts both avoid probate and Medi-Cal estate recovery at the same time.

How to protect your assets from Medi-Cal?

A Medi-Cal Asset Protection Trust is an irrevocable trust specifically created to hold and manage your primary residence and other assets so that you can qualify for Medi-Cal and to prevent the State of California from taking your home and assets from your heirs.

Medi-Cal Estate Recovery – Myths vs. Facts

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How do I avoid medi-cal estate recovery?

The State of California is prohibited from the recovery of any Medi-Cal expenses used if there is a surviving spouse until the surviving spouse passes away. Also, if there is a minor child under the age of 21 or a blind child, or a disabled child, then the State is prohibited from any Medi-Cal recovery.

What will disqualify you from Medi-Cal?

The Medi-Cal program determines eligibility for benefits on a “means” tested basis. If a Medi-Cal applicant's property/assets are over the Medi-Cal property limit, the applicant will not be eligible for Medi-Cal unless they lower their property/assets according to the program rules.

Does Medi-Cal ask for bank statements?

No, asset information is not required. In 2024, renewal forms will no longer ask for asset information. That means you can keep your savings and assets and still keep your Medi-Cal coverage. It is important to open and review any mail received from your county about your Medi-Cal coverage.

What are the new rules for Medi-Cal 2024?

Basic Information. Beginning January 1, 2024, a new law in California will allow adults ages 26 through 49 to qualify for full-scope Medi-Cal, regardless of immigration status. All other Medi-Cal eligibility rules, including income limits, will still apply.

What happens if you win money while on Medicaid?

Winning the lottery generally doesn't require you to pay back Medicaid costs. However, it can affect your eligibility for Medicaid, as eligibility often depends on income levels, which vary by state. You might lose your benefits if your lottery winnings push your income above the Medicaid threshold.

Can Medi-Cal take your house?

Estate Recovery Fears

Will the state force the family to sell the home? A primary home is an exempt asset. This means that Sarah's Mom would not be disqualified for Medi-Cal's nursing home benefits simply because she owns a home. She can keep the property while she is on Medi-Cal.

How does Medi-Cal verify income?

Earned Income Most recent pay stub, written statement from employer, completed employer's income verification letter. All verification must show gross income, pay period, date received and hours worked.

Does Medi-Cal need to be reimbursed?

Medi-Cal is California's free or low-cost medical assistance program for low-income people. What is Medi-Cal Recovery? When a Medi-Cal recipient dies, the state can seek repayment for the cost of services received, including insurance premiums paid and payments made to managed care plans.

Do you have to pay back Medicaid if you inherit money?

If the inheritance is modest, or it has been spent down within the month, Medicaid may only deem you ineligible for a certain period of time. It is important to note that depending on when you report the inheritance you may have to pay back the cost of any Medicaid benefits you received during that time.

What happens if you don't pay Medi-Cal bills in California?

Once medical bills enter collections, they are often reported to consumer credit reporting companies. Medical debt collections on a credit report can impact your ability to buy or rent a home, raise the price you pay for a car or insurance, and make it more difficult to find a job.

Can I have money in the bank and still get Medi-Cal?

On January 1, 2024, Medi-Cal eliminated any asset limit for enrollees and instead considers only applicants' income when assessing financial eligibility for benefits.

How do I protect my assets from Medi-Cal?

Many families seek to protect the family home. One of the best tools to protect the family home is the use of an irrevocable Medi-Cal Protection Trust. The Trust protects the family home from a Medi-Cal recovery lien. The Trust can be designed as a grantor trust which will not be required to file a separate tax return.

Does Medicaid monitor your bank account?

Medicaid agencies can check your account balances at any financial institutions you use during the month you apply or during a 60-month look-back period.

What happens if you lie to Medi-Cal?

And the felony penalties for this form of Medi-Cal fraud include: Felony probation; Two (2), three (3) or five (5) years in county jail; and/or. A fine of up to fifty thousand dollars ($50,000) or double the amount of the fraud, whichever is greater.

How much money can I have in the bank if I have Medi-Cal?

For new Medi-Cal applications only, current asset limits are $130,000 for one person and $65,000 for each additional household member, up to 10. Starting on January 1, 2024, Medi-Cal applications will no longer ask for asset information.

What is the disadvantage of Medi-Cal?

The perception that Medi-Cal offered poorer coverage or less respectful treatment than other types of insurance. Concerns among noncitizen respondents that applying for Medi-Cal might affect their immigration status.

Do you have to pay back Medi-Cal benefits?

What is Estate Recovery? The Medi-Cal Estate Recovery program must seek repayment from the estates of certain Medi-Cal members after they die. Repayment only applies to benefits received by these members on or after their 55th birthday and who own assets at the time of death.

Can Medi-Cal bills take your assets?

One way that the hospital or doctor now can legally take action against you after they win a judgement would be to seize some of your assets. This means that the creditor can file a lien against your home.

How far back does Medi-Cal look at assets?

The 30 month period in California (or 5 year period in other states) is known as the “look-back period.” In essence, state Medicaid agencies are “looking back” for assets transferred at less than fair market value.