Nursing Nome Liens...Can They Take My House (or what is Medicaid or Medi-cal)?

One of the most often asked questions is "If I (or a parent)
have to go into a home (nursing home) will the state take
away my house?"

OK, let's break this down into some simple steps.

First, we're assuming someone can't take care of themselves
and is going to have to be put into an institution. A facility
that has around the clock care, will feed them… look out for
them.

Usually, because they are so frail, unhealthy, or mentally
unstable, they can't do it themselves.

I always have thought the best route was to try to keep someone
at home as long as possible. As we grow older, our home provides
one of the few comforts left in life.

But, let's say staying at home is impossible. So the nursing
home is the only option.

How will it be paid for? Believe me, it is not free.

Basically, there are only three choices. One, you pay privately;
Two, you've bought a specific "long term care insurance policy"
that will cover part or all of the costs; or, Three, you qualify
for Medicaid, (California's version is called Medi-Cal), a form of
welfare provided to people who are medically indigent.

When I was practicing full-time, almost no one had or wanted to pay
for long term care insurance. The thought of being put in a nursing
home was too much to deal with for them. 

Private pay? Almost always the answer was "no way." I've not been
saving my money up to "give it to the state." (A popular misconception).

So, that left the last option… Medi-caid (welfare) where the State and
Federal government would pick up the tab.

Qualifying for Medicaid is called "needs based." Each state (with
Federal guidance) has a set of rules as to what a person can own or
earn in order to qualify.

We'll talk more about these rules in future issues.

However, getting back to the "Can they take my home" question, the
answer depends on if you are married (or have qualified dependents)
that survive you.

Let's assume you are single, have been in a nursing home with Medicaid
footing the bill.  You own your home. In that fact situation, the state
does have the right to place a lien on the home to recoup the money it
paid for your care.