California governor vetoes bill to protect Medi-Cal recipients' assets

California Gov. Jerry Brown (D) has vetoed a bill that would have limited the ability of the state of California to seize assets from the estates of Medi-Cal recipients after their deaths, according to a Los Angeles Times report.

Under federal law, states are required to recover funds from Medicaid beneficiaries who are 55 and older for long-term care services. However, under existing California law, the California State Department of Health Care Services can seize assets from the estates of Medi-Cal beneficiaries for all medical care from age 55 until they qualify for Medicare at age 65. 

Under legislation introduced by Sen. Ed Hernandez (D-West Covina), California's law would mimic the federal law and recovery would be limited to funds provided for long-term care services. In addition, the state would be required to provide Medi-Cal beneficiaries with a list expenses subject to recovery.

"Allowing more estate protection for the next generation may be a reasonable policy goal," Gov. Brown wrote in his veto message. "The cost of this change, however, needs to be considered alongside other worthwhile policy changes in the budget next year." State officials said the legislation would have cost the state $15 million annually, according to the report.

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