Bill would limit efforts to recoup Medi-Cal costs from patients' estates - Los Angeles Times
The state's Medi-Cal program has long looked to the estates and heirs of deceased Californians to recoup public money spent on their healthcare in the last years of life. On Thursday, the state Senate approved, 33 to 0, a bill by state Sen. Ed Hernandez (D-West Covina) to order major changes in the Medi-Cal recovery program. If signed into law, Senate Bill 33 would limit the state's ability to go after homes "of modest value," allowing survivors hardship exemptions for homes with fair market value of 50% or less of the county average. Hernandez took interest after learning that many poor families were reluctant to sign up for Medi-Cal because they didn't want the state collecting after they died. Since 1993, California has recovered more than $1 billion from Medi-Cal recipients' estates — and that number could swell as thousands more low-income people sign up for Medi-Cal as part of the Affordable Care Act. The $1 billion seized came from the estates of Medi-Cal recipients who died leaving behind assets, often their homes. If heirs do not voluntarily pay off the Medi-Cal debt, or win hardship exemptions, California officials file lawsuits to collect the debt in court. Source: www.latimes.com
