News & Information
Governor Schwarzenegger signed AB 1269 into law a few hours before the legal deadline on October 11, 2009
Alana Theriault is a benefit specialist for Abilicorp assisting employees navigate cash and health care benefits programs affected by earned income
---Dear Friends, Family & Colleagues,
As many of you know, I have been working with advocates across the state on this for over 3 years, and we succeeded after two vetoes. AB 1269 (Brownley) is a bill that significantly improves an under-utilized work incentive called the Medi-Cal Working Disabled Program that allows people with disabilities to be on Medi-Cal if they are working. Medi-Cal pays for many vital services including personal assistance services (attendant care) that no other insurance covers, even Medicare. This finally happened after so many of you wrote letters and made phone calls to your legislators and the governor. Thank you for all of your efforts!
The Program
Since 2000, California has had a Medi-Cal eligibility category that allows people with disabilities to earn a little more than around $50,000 a year and enroll onto and/or keep their Medi-Cal (including IHSS) without paying a share-of-cost. People on the program must have a qualifying disability, resources below the $2,000 resource limit ($3,000 for a couple), and documented proof of monthly earned income; and they must pay a monthly premium between $20 and $250 depending on the amount of their earned income. Disability benefits are not counted when calculating program eligibility or premiums, and people enrolled in the program may contribute to an IRS-approved retirement account because it is exempt from the $2,000 resource limit.
This program has been especially helpful for people who were struggling trying to pay their monthly Medi-Cal/IHSS share-of-cost. Unfortunately, there have been a number of problems with this program, especially that most people with retirement benefits are not eligible despite their disability and their need for Medi-Cal.
New Changes
AB 1269 fixes some of the biggest problems with the Medi-Cal Working Disabled Program. Because of restrictions in federal spending guidelines, the new law takes effect shortly after Medi-Cal no longer receives Federal Stimulus Act funds, in about a year from now.
- Retirement income is exempt when calculating program eligibility.
- There is NO resource limit as long as the money saved is from work done while in the program and that money is kept in a separate account.
- One can remain in the program for up to 26 weeks in-between jobs without penalty as long as they continue to pay their premium.
- Monthly premium payments will remain between $20 and $250.
- Premium payments will be based on countable earned income AND disability and/or retirement benefit amounts.
More Program Information
If you would like more information about the existing Medi-Cal Working Disabled Program go to www.disabilitybenefits101.org and look up Medi-Cal, speak with your local benefits planner/advocate, or ask your Medi-Cal Eligibility Worker.
What's Next
- There is a conflict between the new law federal rules that are administered by Centers for Medicaid & Medicare Services, specifically with 26-week grace period. There are other states that have similar Medicaid buy-in programs with the same conflict.
- Thousands of Californians are not eligible for Medi-Cal through the Working Disabled Program because of their spouse's income, and many thousands more do not marry or file for domestic partnerships because of how would-be spouse's income would end their Medi-Cal eligibility. We call this the "Marriage Penalty." While is may seem reasonable to some that a spouse's income should be used for health care costs, few people realize that personal assistance services for someone like myself costs over $3,000 per month not including my assistants' health care coverage. And most medical equipment rentals and repairs (wheelchairs, ventilators, etc.) are mostly only covered by Medi-Cal or Medicare. Few married couples can afford this AND pay rent or a mortgage.
The World Institute on Disability's California Work Group (The CWG) will continue to work on these and other issues. If you would like to be on the CWG e-mail list, go to the following link: http://db101.us1.list-manage.com/subscribe?u=f7a1bce984c0f4db1e0b87607&id=bf886bc5d6
Sincerely, Alana
