Can the state take my home if I go on Medi-Cal?
Asked by: Vada Brekke | Last update: November 7, 2025Score: 5/5 (66 votes)
Will Medi-Cal take my home?
After the Medi-Cal recipient dies, the state will send the heirs or survivors an “estate recovery claim” asking for payment for the amount of Medi-Cal benefits paid on behalf of the deceased individual. The state does not put a lien on the home and the state does not take away your home.
What happens to your house when you go on Medicaid?
Medicaid does not count your home is an asset, so long as it is YOUR primary residence (you live in it 24/7). The only time Medicaid may interfere with your home is if you need long-term care. If you do, in some states, Medicaid may keep your home when you pass away to sell in order to recoup some of your care costs.
Do you have to pay back Medi-Cal in California?
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.
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.
Can Medicare Take Your Home?
Can your house be taken away for Medi-Cal bills?
The short answer is yes, it is possible to lose your home over unpaid medical bills though the doctor or hospital would have to be willing to go to a lot of effort to make that happen. Medical debt is classified as unsecured debt. This means that your debt isn't tied to any collateral.
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.
What is the new law for Medi-Cal in 2024?
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 can't pay medical 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 own a house and get Medi-Cal in California?
First, if you own a home, you can still qualify for Medi-Cal. California has one of the best health services in this regard because California does not ask that you sell your home and pay for your medical needs, but rather it will front all the medical bills for you while you are alive.
How can I avoid losing my home to Medicaid?
Medicaid cannot take one's home if they live in it and their home equity interest is under a specified value. In other words, the home is exempt; it is not counted towards Medicaid's asset limit of $2,000 (in most states). Home equity is the home's value after subtracting any debt against it.
Will I lose my Medi-Cal if I sell my house?
➢ Do assets affect my eligibility? Starting on January 1, 2024, assets, such as bank accounts, cash, a second vehicle, and homes, will no longer be counted when determining Medi-Cal eligibility.
What is it called when Medicaid takes your house?
To compensate for multi-billion dollar Medicaid expenses, the federal government established the Medicaid Estate Recovery Program (MERP). This program requires states to recoup Medicaid payments made to benefit recipients 55 years and older. This also includes payments for assisted living.
What are the restrictions for Medi-Cal?
If you apply for Medi-Cal in 2023:
The current asset limit is $130,000 for one person. Each additional household member adds $65,000 to the asset limit. Up to 10 members can be in a household. Medi-Cal will also consider income information (including income from property).
Can you sell your house if you are on Medicaid?
Note: California stands apart from the other states. CA eliminated their Medicaid (Medi-Cal) asset limit effective 1/1/24. Medi-Cal applicants and beneficiaries can have unlimited assets and still be eligible for Medi-Cal. They could sell their home and it have no impact on their eligibility.
Can a hospital take your house for unpaid medical bills?
Both hospitals and debt collectors have won judgments against patients, allowing them to take money directly from a patient's paycheck or place liens on a patient's home. In some cases, patients have also lost their homes. Medical debt can also have a negative impact on a patient's credit score.
How to get medical bills forgiven in California?
All hospitals offer discounts or bill forgiveness based on income. On average, a family of 4 earning less than $100,000 a year will qualify. You can apply for financial assistance before or at the time of your hospital treatment or service. You do not need to wait for a bill.
Is it illegal to bill a Medi-Cal patient?
If a health care provider does charge you, this is called balance billing, and it is against the law. This applies to both your Medicare and Medi-Cal providers. This applies even if you are in a health plan for your Medicare or Medi-Cal benefits.
Does Medi-Cal look at your bank account?
Starting on January 1, 2024, Medi-Cal applications will no longer ask for asset information.
What are the big changes coming to Medi-Cal?
No More Asset Test
One of the most significant changes is the elimination of the asset test for all Medi-Cal programs. As of January 1, 2024, assets such as cash, bank accounts, homes, and second vehicles will no longer be considered when determining eligibility for Medi-Cal.
Can I get Kaiser with Medi-Cal?
The California Medi-Cal program provides health care coverage for some of the most vulnerable populations in the state and Kaiser Permanente participates in the Medi-Cal program to provide high quality care to enrolled beneficiaries in most counties currently served by the health plan.
Can Medi-Cal put a lien on your home?
Medi-Cal places a lien against the benefi- ciary's property while the beneficiary is still alive so it can seek recovery when the individual passes away or when the property is sold. Passage of the ACA raised questions about whether and how Medicaid recovery rules would be applied to the newly eligible population.
How do I shelter my assets from Medicaid?
Strategies for Medicaid Planning. Asset Protection through Irrevocable Trusts: Irrevocable trusts, such as Medicaid Asset Protection Trusts (MAPTs) and Special Needs Trusts (SNTs), are invaluable tools for shielding assets from Medicaid eligibility calculations and planning for long-term care expenses.
How do I remove myself from Medi-Cal?
If you need to cancel your Medi-Cal coverage, call your local county office. Once you are released from Medi-Cal, get a quote online to view rates and enroll in a Covered California plan. Be aware that there are different income limits for Medicaid/Medi-Cal versus Covered California (the state exchange.)