Medi-Cal Nursing Home Care Update: Estate Recovery

California is required in many circumstances to seek recovery of costs paid by Medi-Cal for nursing home care, after the death of a Medi-Cal recipient. The law provides some protections from recovery. In May 2006, California implemented changes to the recovery rules. One change provides that the California Department of Health Services shall waive a recovery claim if the inheriting person

• lived in the Medi-Cal recipient's home for at least two years and

• provided care during that time that prevented or delayed the Medi-Cal recipient's admission to the nursing home.

The person requesting the waiver would need to continue to reside in the home and provide written medical substantiation from a licensed health care provider (or providers) that the care provided prevented or delayed the Medi-Cal recipient's admission to a nursing home.

Another rule change limits recovery against life insurance policies and retirement accounts to policies and accounts that are payable to the Medi-Cal recipient's estate.