The Medicaid bill that doesn’t go away when you die

Disir

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Sep 30, 2011
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MATT SALO: Medicaid is the largest payer of long-term care in this country. Medicaid shouldn’t and cannot sustain itself if it continues to provide all long-term care to all people, especially those who have the means of paying for some of it on their own.

SALLY SCHILLING: Medi-Cal’s managed care premiums are typically hundreds of dollars per month. But recipients aren’t notified of how much money is being spent on them. Rod says he asked a Medi-Cal representative how much money he was accruing.

ROD MORGAN: And she said, oh, we don’t have any idea. We don’t figure that out until after you die.

SALLY SCHILLING: Heirs could receive for a hardship waiver, but only if they can show that their parents’ Medicaid bill would cause an undue hardship or that they were a caretaker for their parents in the family home.

Jo Ann Bell lives in Oakland, California, in the home her grandparents purchased in the 1940s. It was here that she cared for her mother with Alzheimer’s.

SALLY SCHILLING: Bell put her mother in adult day care while she went to work. Her mother’s care was covered by Medi-Cal. Her mother passed away in 2012.

JO ANN BELL: And then I got, bam, this letter from the state of California saying, oh, you owe us $54,000. I was like, what?

SALLY SCHILLING: Bell applied for a hardship waiver. But because the family home was entrusted to her and her three brothers, the state only waived her quarter of the recovery fees. The state now has a lien on the house for $43,000 at 7 percent interest. She worries she might have to sell the family home to pay off Medi-Cal.
The Medicaid bill that doesn t go away when you die

That is part of the transcript from news hour. You can read/watch the rest there.
 
Tell Sally to stop worrying.
A lien is for WHEN/IF she sells the house.
The interest rate is way too steep.

There's some bunk in there too.
The nursing home should be able to provide monthly billing statements.
In many cases nursing homes take a Medi-Cal patient at a loss.
 
This happens entirely too much. It creates chaos.

Are they calculating how much you pay into it before sending the bill? Probably not.
 
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RUTH MORGAN: And then weeks later, we got a letter in the mail saying, congratulations, congratulations! You qualified for Medi-Cal. And then on the back page, this little paragraph says that you are subject to estate recovery, and do not contact your social worker about this.
 
I'm looking at SB33
SB 33 Senate Bill - INTRODUCED

Federal law makes the states recovery optional. There are 18 states, if I remember correctly with one cup of coffee, that do not seek recovery.

New Jersey does the same thing. I think a few states may even try to go to any relative that lived in the house for a length of time.

It might have to be attacked at the Federal Level.
 
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