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Why did MediCal raise dad's share of cost due to a non cash value insurance policy?

My father has an insurance policy through government. MediCal asked if it has cash value, it does not. They raised his share of cost to more than he makes. Now what? Please help.
Status: Open    Sep 08, 2015 - 01:28 PM


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Sep 16, 2015 - 01:54 PM

I am in Alabama but the laws are similar. The only thing I can think of is that the cost of the insurance is being deducted from his income prior to deposit. If it is deducted from the gross income and is more than the monthly personal allowance it would make his share of the cost for the nursing home to more than his net income. Compare his gross income and his net income or what is deposited in the bank.
The policy can very likely be kept as long as someone else pays the premium. If it is economicly feasable I would continue to pay it. That is if it is a $100,000 policy and it costs $50 per month. Your father could live many years and you would still get more in insurance proceeds at his death than you pay. Make sure you are the beneficiary. If it goes to his estate then MediCal can recover it from his estate after he is gone.
I hope this helps.
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