Payment Options for LTC and Medi-Cal Recovery - CLTCOA

Know Your Benefits:
Payment Options for LTC and Medi-Cal
CLTCOA Ombudsman Training
October 20, 2014
Presenter: Pauline Mosher
California Advocates for
Nursing Home Reform (CANHR)
Consumer Hotline: (800) 474-1116
Pre-Placement Counseling
Medi-Cal Information/Counseling
Resident Rights Issues
Elder Abuse Issues
Lawyer Referral Service
Legislative and Administrative Advocacy
LTC Funding in California
 Private Pay
 Long Term Care Insurance
 Medicare
 Medi-Cal
 VA Aid and Attendance
 SNF = $90, plus $35 PNA
 RCFE = $1,130-$2,085
 At home = unreimbursible medical expenses/dependents
 Single Veteran:
 Married Veteran:
 Surviving Spouse:
Some Payment Options for LTC
At Home:
• Home Health (some Medicare/Medi-Cal – but limited)
• LTC Insurance
• Private Pay
• Aged & Disabled Program (no SOC Medi-Cal & IHSS)
• VA Aid & Attendance (unreimburseable medical costs)
• IHSS (Medi-Cal eligible)
• MSSP (Must be Medi-Cal eligible)
• PACE (must be on Medicare/depends on county)
Residential Care for the Elderly
Payment Options
 85% of residents = private pay
 SSI/SSP rate = $1,133 ($130=PNA)
 Some LTC insurance coverage
 VA Aid and Attendance
 Assisted Living Waiver Program (ALW)
 Only in some counties
 RCFE & Medi-Cal: does not cover RCFE care, but can be eligible for
Nursing Home Care
Payment Options
 Medicare: after 3 day acute care stay
 Rehab in Skilled Nursing Facility – up to 100 days under Medicare
(average about 23 days)
 Select Medicare/Medi-Cal certified facility
 Private pay
 Medi-Cal = 64% all or part of the cost of care
 $2,000 or less in assets
 Spousal Impoverishment if there is a spouse
 Income generally not a barrier to Medi-Cal in NF
 Criteria for admission to SNFs are contained in state
regulations (Title 22, CCR, Section 51335) and are
applied on a statewide basis.
 I. Criteria for Determining Admission to SNFs
 II. Continuing Care Determinations
 III. Subacute Level of Care-Criteria for Determining or
Extension of Stay
 II. Continuing Care Determinations
 III. Subacute Level of Care-Criteria for Determining or
Extension of Stay
Debunking the Myths of
Short Term Stay Beds
 Fiction: Beds are designated as either long term or
short term.
 Fact: If a nursing home is licensed in California, it must
meet California nursing home standards.
Debunking the
 If you are being discharged from the facility while still
being covered under the 100-day Medicare benefit
period, you have a right to appeal.
 If you do not win the appeal and your Medicare
coverage is terminated, you should not be forced to
leave the facility. You may stay. However payment must
be arranged, as the resident is then financially
responsible for services received.
 If the facility accepts Medi-Cal and you qualify, the
facility will be prohibited from discharging/evicting you
once the Medi-Cal application has been submitted.
Selected 2014 COLAs
 Community Spouse Resource Allowance = $117,240
 Minimum Monthly Maintenance Need Allowance = $2,931
 Average Private Pay Rate = $7,628 APPR
 SSI Board and Care = $1,133 ($130 Personal NA)
 Aged & Disabled Federal Poverty Level
 Individual = $1,203 (4/1/14)
 Couple = $1,621 (4/1/14)
Medi-Cal Eligibility
At Home or in the community:
• no penalties for transfers
• $2,000/$3,000 in Assets
• No look back period
In a Nursing home:
• Look Back of 30 months for transfers
• Spousal Impoverishment applies
• Share of cost ($35 PNA)
Medi-Cal Exempt Assets
Other Real Property
Business Property
Household Goods and Personal Effects
Jewelry (single v. spousal)
One Car
Term Life Insurance; whole life of $1,500 or less face
Burial Plots & irrevocable burial plan and $1,500 designated
burial fund
 $2,000 cash reserve or other assets
 CSRA = $117,240 (2014)
Principal Residence
 Almost always an exempt asset and can transfer during
life without impacting Medi-Cal eligibility:
• Intent to return home
• Multi Unit dwelling
 Buildings, land contiguous to or appertaining to the
 Proceeds of sale
 Out of state residence
Transfer of Assets: 2014
• Date of Transfer v. Date of Application
• Still date of the transfer(s)
• Period of Ineligibility
• Runs from month of transfer
• No partial months of ineligibility
• Concurrent periods of ineligibility still in effect
• Sample transfer of $12,000 in February 2014
($12,000 ÷ 7,628 = 1.6 months)
Transfer of Assets- Sample #2
Multiple Transfers: Total Amount = $21,000
May 15:
May 15:
May 15:
$7,000 to Joe
$7,000 to Sue
$7,000 to Amy
Period of Ineligibility:
$7,000 ÷ APPR ($7,628) = .92 month
0 month = period of ineligibility
How Calculated:
Each transfer calculated separately
Transfer periods run concurrently
(as long as under $2,000 asset limit in May)
When Transfer Penalties
Do Not Apply
 No transfer penalties for community-based Medi-Cal only if enter a nursing home
 Asset is exempt
 Any asset of any amount to blind or disabled child (not
a minor - unless it’s a home)
 Intended to transfer for fair market value or valuable
 Denial of eligibility would result in undue hardship
Community Spouse Resource
Allowance (CSRA) & MMMNA
 $117,240 CSRA
 $2,931 MMMNA
 Expandable (Court Order/Fair Hearing)
 After Acquired Assets
 90 days to remove Medi-Cal beneficiary
Impact of CSRA on Spouses
 Snapshot of assets at application
 No distinction between community and separate
 At home (community spouse) can retain
• CSRA of $117,240 (any non-exempt assets)
• IRAs/pensions in his/her name
• all other non-exempt assets
• After-acquired assets
Increase in CSRA
 Spousal Income & Assets:
John (SNF)
Mary (At Home)
Income =$2,500/Month $500/Month Income
$50,000 IRA
$30,000 IRA
 Other Spousal Assets:
In other joint assets
- 117,240 CSRA for 2014
John’s cash reserve
Above CSRA
Same Sex Spouses & RDPs
AB 641 (Feuer): Spousal Impoverishment extended to same sex spouses and
registered domestic partners (RDP) for transfers of property and income
ACWDL 12-36: Undue hardship shall be found to exist if the institutionalized
spouse verifies/attests that they have a same sex spouse or RDP via:
Statement of facts, or
A signed statement by the applicant, or
A copy of the marriage license
Transfers of property: Net market value must not exceed the CSRA $117,240.
Income Allocations: Share of cost shall be reduced to allow allocation if
spouse’s income does not exceed the MMMNA $2,931
Income allocations and CSRA: Amounts may be increased via fair hearing or
court order
CCI & Nursing Home Issues
 Cal MediConnect = Dual Demonstration
Project/Coordinated Care Initiative
 Medicare/Medi-Cal dual eligibles
 Combine care into single benefit package
 (acute, primary, institutional, HCBS)
 Administered by MMPs – Medicare/Medicaid Plans =
managed care
 Active or passive enrollment
Passive Enrollment
 Calculation that determines which providers were
highest used or highest prescribers for person in past
12 months
 Example: NF resident has been in facility for past 12
months, match resident with plan that contracts with
Impact on Current NF
 Already in a facility – long term care resident prior to
enrollment – can stay for duration of the project
 IF
 NF is licensed by state
 Meets “acceptable” quality standards
 NF and MMP agree to Medi-Cal or plan rates
whichever is greater
 What is the definition of “long term”?
 What are “acceptable standards”?
 What if NF refuses to agree to contracted Medi-Cal
 Excuse to discharge Medi-Cal residents for nonpayment and free up a bed?
Enrollment Issues for current
NF residents
 Who will assist residents in choosing a plan if NF can’t
 How do residents know what plans NF participates in?
 “Unrepresented” residents – who will assist them in
choosing a plan?
 If passively enrolled in non-participating plan = eviction
for non-payment
 Beneficiaries may disenroll and choose participating
plan if available
Cal MediConnect: Issues for
Prospective Residents
 Rates: NFs receive facility-specific Medi-Cal rates.
Nothing to keep plans from contracting with lowest paid
and lowest performing NFs. (quality standards are
determined by the plan)
 Contracting: Some plans will contract with all NFs in a
county. Others only contract with some. How do
consumers find out which plans contract with which
 If $ is an issue: What is the incentive to send
beneficiaries to higher quality facilities? – maybe costly
readmissions to acute care?
Ancillary services in
nursing homes
 Ancillary services = therapy, supplies, lab, x-rays, etc.
– currently billed separately
 Under new program – Plans will decide, will require
pre-authorization and will have an economic incentive
to only use providers in their network
 Result = reduction in services to NF residents
Potential Problems with
CCI/Cal MediConnect
 Intent maybe to provide “coordinated care” – but goal is
to save money
 Could result in even worse care for dual eligibles
 Delayed admissions to NFs
 Reduction in therapy and other ancillary services
 Continuity of care provisions leave most decisions up
to the plan
Potential Problems with
CCI /Cal MediConnect
 Appeal rights: no change for now, but later will have to
appeal to plan
 Very complex rules for consumers to understand - how
to retain current providers?
 Too much MMP discretion as to whether a service or a
provider will be included
 Forcing seniors to turn their care over to managed care
– MMPs will chose the care & the providers
CCI/Cal MediConnect
 Continuity of care website:
 Office of the Ombudsman: 1-888-452-8609
 Department of Managed Health Care (DMHC) Help
Center (Not DHCS)1-888-466-2219
 Cal MediConnect Ombudsman:
 (855) 501-3077 help navigating plans
What is Medi-Cal Recovery?
 Federal Law (42 U.S.C. §1396p) requires states to recover from:
• Those who are inpatients in NF, ICF-MR or other medical institution and
not expected to return home
• 55+ years of age: received NF services, HCBS & related hospital and
prescription drug services
• At option of state, can recover for any items and services under the
state plan
• (California exercised that option and recovers for everything MediCal paid for)
What Is Medi-Cal Recovery?
California can recover from your estate after you die if:
• You were over 55 years of age when you received (any)
Medi-Cal benefits or
• Medi-Cal paid while you were in a nursing home, ICFMR or other medical institution at any age
When Can the State Recover?
The State cannot recover:
• Until after you die
• If you are survived by a spouse –
the spouse dies
• If you are survived by a minor child
• If you are survived by a disabled
of any age – does not have to
live with you
What Can the State Recover?
 Amount of the claim or value of the estate
whichever is less:
Donald received $120,000 worth of Medi-Cal
Benefits and his estate received an estate claim
of $120,000 after he dies for the benefits paid.
He left nothing in his estate.
No recovery, since there is nothing left in his estate
in his name.
What Can the State Recover?
• Amount of the claim or value of the estate whichever is
• Example:
Donald leaves a house worth $250,000 and the estate
claim is $50,000. The state can only claim up to
$50,000 from his estate.
What is the Value of My Estate?
 Amount of the claim or value of the estate whichever is less
 Fair Market value at time of decedent’s death
 Name(s) on the property at time of death
 Joint tenancy – your % of the property
 Living Trust (be careful what you put in)
 Annuities purchased on or after 9/1/2004
are subject to recovery
What Property in Exempt from a Claim?
 Property transferred prior to death
 Irrevocable Life Estates
 Occupancy Agreements= right to occupy for life
 Life Insurance*
 Retirement Accounts *
 *Unless the estate is the named beneficiary or it reverts to the
estate. Always check the beneficiary and beware putting these
into living trusts)
Check itemization
 IHSS payments exempt (But if payments made to
managed care, then will no longer be exempt)
 SLMB and QMB Medicare premiums, co-payments and
deductibles exempt
 Deduct outstanding mortgages, burial costs, estate
settlement costs, etc. from the amount of the claim
What about my home?
• Primary asset usually home and home is exempt asset
State does not put a lien on your home – unless in a
nursing home and you indicate you do not have an intent
to return home
Always put “yes” – intend to return home
Can transfer an exempt asset at any time
What About My Home?
 Can transfer an exempt home prior to death by:
Gift deed with life estate
Gift deed with occupancy agreement
Outright transfer
Joint tenancy – can only recover your %
Irrevocable trust
What about my Home?
 Beware of tax consequences and/or losing your home
 Problems with transfers of home
Joint tenancy=can still claim your % of home
Outright transfers – taxes and can lose home
Irrevocable trusts- can’t access the equity
Living trusts – not immune from recovery
How Can I Avoid Recovery?
 Leave nothing in your estate when you die
 Execute a Durable Power of Attorney with gifting and
real estate transfer clauses
 Do planning, depending on your age and health
 If already living with grown, responsible children,
consider a transfer with a life estate
How Can I Avoid Recovery?
 If receiving nursing home or long term care services,
consider transfers
 If spouse enters a nursing home or needs LTSS,
consider transferring the home to the well spouse –
then no recovery after the Medi-Cal spouse dies
 Check to see if there is an exempt child or if a hardship
 Prepare your heirs/survivors on what to do
Notice of Death
 After a Medi-Cal beneficiary dies, heirs/survivors must
send a notice and copy of death certificate to DHCS
 DHCS Recovery Unit will send a questionnaire – do not
complete until you consult with legal services or CANHR
 DHCS will send a notice of an estate claim
 Spouse (while alive)
 If receipt by distribution or survival, then after death of
surviving spouse - but not if property transferred
 Minor (under age 21) - if minor at time of death
 Does not have to be an heir
 Does not have to be living in the property
 Verification of SSI or SSA as of date of claim
 Plus, birth certificate or adoption papers
The Department shall waive an applicant’s proportionate share of the claim if a
hardship exists:
Contact CANHR or Legal Services if you plan to file for a hardship!
How to find out the amount of the
 Claims detail report: how much is owed
DHCS 6236 (for individual) or 6237 (for agent)
• Can download this form online
• Although living beneficiaries can obtain information on how
much in Medi-Cal benefits were paid, the State cannot collect
or file an estate claim until after the beneficiary has died.
If you have questions about Medi-Cal or Medi-Cal
Recovery and go to:
Medi-Cal for Long Term Care
Call (800) 474-1116 and speak to an Advocate
California Advocates for Nursing Home Reform
650 Harrison Street, 2nd Floor
San Francisco, CA 94107