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A Medi-Cal Recipient Can Rent Out the Home to Help
Pay for Upkeep and Interest on Mortgage


It is a common misconception that when one gets on Medi-Cal, all of one?s income counts towards the share of cost. In addition to the $35 deduction for personal and incidental needs, if a Medi-Cal recipient rents out the home, Medi-Cal will deduct certain expenses from the gross rental income in determining the share of cost. These expenses include taxes and assessments, interest (but not principal) on encumbrances (such as mortgages and loans), insurance, utilities, and upkeep and repairs. Upkeep and repairs are the greater of the actual amount for upkeep and repairs during the month (keep receipts), or 15% of the gross monthly rental, plus $4.17 per month.

When a resident is not expected to return home within six months, but still maintains an intent to return home, renting out the home is often a good alternative to maintaining the home for the resident. Remember that any income from the rental, after all deductions, will count toward the resident?s share of cost.

A Medi-Cal recipient in long term care who expects to return home within six months can also retain some income for upkeep of the home if all of the following conditions are met:

  1. The spouse or family of the person is not living in the home
  2. The home, whether rented or owned by the person, is actually being maintained for that person?s return, and
  3. There is a verified medical statement that the person will return home within six months.
The amount allowed under these circumstances is small and depends on the living circumstances of the resident.

The relevant regulations are found in Title 22 of the California Code of Regulations (?CCR?), sections 50508(a)(1) and 50605(c), respectively. You can find the CCR online (www.calregs.com).