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Shown below are countable asset and monthly income limits for 2003 for the three Savings Programs:


Asset Limits
As shown above, the asset (or resource) limits are low and uniform for all three programs. Almost all of a person's or couple's assets count against the limit. But, there are important exclusions, including the value of a person's home, personal possessions including a car, some life insurance policies, and more.

Income Limits
The income limits vary among the three programs. And, the calculations exclude certain types of income. People who initially believe their income levels are too high may find that, after the exclusions are made, they are within the eligibility limits.

In the calculations, if an individual has monthly earned income, the first $65 of this amount is not counted, nor is 50% of the remaining earned income balance. Earned income typically comes from a current job. Social Security and pension payments, and earnings from investments, are considered unearned income.

Here's an example: Elva has monthly gross income of $1,000 - of which $725 is from her Social Security payments. The remaining $275 is earned income that comes from a part-time job. From this $275, Medi-Cal first subtracts $65 and then counts only one-half of the remaining earnings. So, Elva's countable income is $830 ($725 plus $105), not the $1,000 gross amount.

This is a simplified example. Other, lesser known, exclusions can also reduce countable income. An added point: for people who purchase Part B coverage through monthly deductions from their Social Security checks, those deductions will be added back when determining countable Social Security income.


The Application Process
If your income and asset levels are close to the qualifying limits, you should apply. DHS or the local social service office may find exclusions that you are unaware of that will lower your countable assets or income.

Ideally, you will submit a single application to your local social services office - and the office will determine which of the Medi-Cal programs, including the three Medicare Savings Programs, you might be eligible for. In reality, though, you may have to complete more than one set of application forms.

As part of the application process, the local office or DHS will verify your income and assets, and you will be asked to provide financial statements and account information. By law, they must respond to your application within 45 days. Finally, if you are declared eligible, each year the local office or DHS will re-determine whether you meet the requirements.