Important Facts About Medi-Cal: Treatment of Income

There is no income limitation in California for Medi-Cal. An individual or married couple can have any amount of monthly income and qualify for benefits. However, Medi-Cal may require a nursing home resident to devote most of his or her income to help pay for care. This is called a share of cost. Share of cost is calculated differently if the Medi-Cal recipient is married or single.

Married couples are entitled to keep at least $2,524.00 per month before any contribution must be made towards share of costs. This amount can be substantially higher depending upon whose income it is. If the income belongs to the well spouse it does not count towards share of costs and may be kept by the community spouse (well spouse). If, on the other hand, the excess income belongs to the nursing home resident and their combind income exceeds the minimum amount those excess funds will need to be contibuted as a share of cost. Thus, even if the community spouse is still working and earning $5,000 a month, she will not have to contribute to the cost of caring for her spouse in a nursing home if he is covered by Medicaid.

Single individual are limited to a maximum of $35.00 per month. This $35.00 is called a personal needs allowance. A single individual will also receive a deduction for any uncovered medical costs (including medical insurance premiums). A deduction may also be allowed for a dependent child living at home.