Can the state try to recoup costs from parents that Medi-Cal has spent on a child?

Some parents doing estate planning may worry about the Estate Recovery Program where the state tries to recoup its costs spent on long-term care of Medi-Cal beneficiaries after their death. However, this program does not apply to children who receive Medi-Cal while living with their parents.

This program only applies to benefits received once people are over the age of 55 or living in an institution. It might be something that parents have to think about down the line when their children are nearing age 55 or if they are institutionalized, but regardless, it only impacts assets that are subject to probate, so if assets are in a trust, then they are not susceptible.

In addition, since IHSS is a Medi-Cal program, asset recovery would only apply to IHSS benefits received after age 55. In addition, the state would only seek to recoup from assets that are owned by the individual, not by their parents.

You can see our Future and Financial Planning decoder for more information about estate planning for parents of kids with disabilities.