How can my well-to-do friend qualify for Medical? (for sale, 2014)

[maiamom]

Originally Posted by Curmudgeon

Why is she a friend? She and her husband are crooks.

Haha, yeah, she was a friend from my hometown who calls me on occasion to keep up with mutual friends. Frankly she has never seemed like the type to do anything like this which is why I was shocked when she mentioned they got on Medicaid. Especially since she has kept me posted about her selling her mom's house, getting $950k to invest, the trip to Hawaii they planned (Europe at Christmas), etc. To be really honest I think her husband is a huge dolt who probably filled out their forms so she has no idea what he did and believes everything is above board.

[sayulita]

Originally Posted by 2sleepy

He might want to talk to someone about the sale of the house, it will probably be considered income:

Examples of Taxable Income
Gains from sale of property or securities

I did talk to someone about it and she said that it's monthly income that counts, not one time capital gains, which in this case will be less than $100K and not taxable.

[CA4Now]

Originally Posted by RosieSD

Under Obamacare, eligibility is based on income, not assets. And, being unemployed triggers "special circumstances" in income that make a family eligible based on the number of people in the family.

You mean eligibility for a health insurance policy under Covered California. The Affordable Care Act (aka Obamacare) is not the same as Medi-Cal, though.

A person does not qualify for Medi-Cal simply because he has been unemployed for two months while receiving unemployment benefits. The OP's friend appears to be confused.

See: What is the difference between Covered California and Medi-Cal?
http://www.coveredca.com/medi-cal/

[maiamom]

Originally Posted by CA4Now

You mean eligibility for a health insurance policy under Covered California. The Affordable Care Act (aka Obamacare) is not the same as Medi-Cal, though.

A person does not qualify for Medi-Cal simply because he has been unemployed for two months while receiving unemployment benefits. The OP's friend appears to be confused.

See: What is the difference between Covered California and Medi-Cal?
http://www.coveredca.com/medi-cal/

Thank you for clearing that up. Now I get that she qualified for Covered California, but she told me that it was free so who knows what they filled out.

[Lyndarn]

Originally Posted by RosieSD

Under Obamacare, eligibility is based on income, not assets. And, being unemployed triggers "special circumstances" in income that make a family eligible based on the number of people in the family.

See:

Bye-Bye Medicaid Asset Test* | The Incidental Economist

https://www.legalconsumer.com/obamac...picID=53&ST=CA

I find this thread screaming OUT hugely..That someone who has multi-ASSETS..wants to take advantage of a system

[2sleepy]

Originally Posted by sayulita

I did talk to someone about it and she said that it's monthly income that counts, not one time capital gains, which in this case will be less than $100K and not taxable.

I don't think that is right, here's the state's position on money from sale of a primary residence:

"Principal residence. Property used as a home is exempt (not counted in determining eligibility for Medi-Cal). When an applicant or beneficiary is absent from the house for any reason, including Institutionalization, the home will remain exempt if the applicant or beneficiary intends to return home someday. The home also continues to be exempt if the applicant’s or beneficiary’s spouse or dependent relative continues to live in
it. Money received from the sale of the home can be exempt for six months if the money is going to be used for the purchase of another home."

[sayulita]

Originally Posted by 2sleepy

I don't think that is right, here's the state's position on money from sale of a primary residence:

"Principal residence. Property used as a home is exempt (not counted in determining eligibility for Medi-Cal). When an applicant or beneficiary is absent from the house for any reason, including Institutionalization, the home will remain exempt if the applicant or beneficiary intends to return home someday. The home also continues to be exempt if the applicant’s or beneficiary’s spouse or dependent relative continues to live in
it. Money received from the sale of the home can be exempt for six months if the money is going to be used for the purchase of another home."

Those are not the requirements in Oregon. One does not have to re-invest in another home and the one time capital gain does not affect eligibility for subsidies.

[Curmudgeon]

Originally Posted by sayulita

Those are not the requirements in Oregon. One does not have to re-invest in another home and the one time capital gain does not affect eligibility for subsidies.

More's the pity. The tax payers get shafted again!

[maiamom]

Thanks for all the information. I have learned a lot, but mostly that California has made it really easy for people to legally take advantage of the system. I must admit it annoys me that my husband and I have to pay $1000 a month for our employer sponsored "good" health insurance while my friend gets it free. Seems there is little incentive to work.

[2sleepy]

Originally Posted by maiamom

Thanks for all the information. I have learned a lot, but mostly that California has made it really easy for people to legally take advantage of the system. I must admit it annoys me that my husband and I have to pay $1000 a month for our employer sponsored "good" health insurance while my friend gets it free. Seems there is little incentive to work.

$1000 for 'employer sponsored health insurance'? Wow, who do you work for, Uncle Scrooge?