I posted a diary here on August 26 about California turning Medi-Cal into a long term loan for recipients aged 55+ by billing their estates after they die for all of their Medi-Cal expenses. The bureaucrats call that “estate recovery.” I call it legal theft. A bill to remedy this situation and protect low income property owners has unanimously passed the California legislature. The bill has now gone to the governor to be signed. But he is planning to veto it!
Today, many organizations are jointly sponsoring a call-in to the governor's office to put pressure on Governor Brown to sign SB 1124. More information about the call-in is at the bottom of this diary. But first, some background information.
The Affordable Care Act vastly expanded who is eligible for Medicaid (Medi-Cal in California). My wife and I were eligible and signed up. Nobody connected with Medi-Cal ever told us anything about so-called “estate recovery” before, during, or after signing up. I found out on my own when I read an article online about it.
Under a 1993 law, states have the option of billing estates of Medi-Cal recipients who are 55+ for all healthcare paid for by the program and seizing assets to cover that bill. California is one of only ten states that do this. I was shocked and angry when I found this out.
Last April, SB 1124 was introduced in the California Legislature that limited estate seizures to that which is required by Federal law, which is the cost of long term care, such as nursing homes. At the end of August that bill passed UNANIMOUSLY! However, Governor Brown's staff is recommending a veto because it will save the state $15 million annually. That is 1/100 of 1% of the state budget. In other words, it is OK to seize poor people's homes for what amounts to chump change for the state!
After SB 1124 was introduced, I started an online petition in support of the bill. I have heard a lot from signers of the petition. Nearly every person I have ever talked to about Medi-Cal “estate recovery” is just as shocked as I am. Some of the things they have said and/or written to me about “estate recovery” include “unconscionable,” “unfair,” “appalling,” and an “ill-conceived asset-stripping scheme.” Ruth Morgan of Stockton is now calling Jerry Brown "Grave Robber Governor Brown!"
Some of the people who signed the petition have told me their stories. Here are some:
One woman is delaying gall bladder surgery rather than sign up for Medi-Cal. She turned 55 earlier this year, is on disability and cannot work, and will pay off her home mortgage later this year. Because her income is too low for the subsidies for private insurance that middle income people get, she is hoping to pay full price for health insurance when the open enrollment period for Obamacare begins in November.
Others tell me that the process of signing up takes a long time, is cumbersome, and, like me, that nobody told them about “estate recovery” when they did sign up. And, like me, they found out about it later through their own research. There have even been cases where the family and beneficiaries first find out about Medi-Cal “estate recovery” after the recipient dies and assets are seized.
Another woman explained that she had chosen to move back into her father's home when he became very ill so she could take care of him. His healthcare was covered by Medi-Cal. She was able to work in addition to caring for him but put all her extra money into paying taxes, maintenance, and upkeep for the house. She has no money saved, but had assumed that she would be able to continue to live in the house after he dies. There is a hardship exemption, but it will not apply because she can work. Thousands of her dollars will be lost when he dies and the state steals his home that she will no longer inherit.
Most ridiculous of all, a 62 year old man, who is an unemployed librarian with an MA in library science, broke his finger. It is all discolored from the injury. Rather than sign up for Medi-Cal so his finger could be taken care of by a doctor, he splinted it with a popsicle stick. He does not want to lose his house.
As I said at the beginning of this post, many organizations are jointly sponsoring a call-in today to pressure Governor Brown to sign, not veto, SB 1124. Sponsoring organizations include Alliance of Californians for Community Empowerment, Advancing Justice, Community Health Centers, Having Our Say Coalition, Health Access, Mexican American Legal Defense and Education Foundation (MALDEF), NAACP, and Young Invincibles.
Call Jerry Brown's office NOW
and state your support for SB 1124.
(916) 445-2841
If you cannot call today, then email him at:
https://govnews.ca.gov/...
Or you can call on another day.
And please sign my petition in support of SB1124 at:
Healthcare Should Not Be a Loan!
