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Annual Net Worth
There is a different method of calculating property reserves for the MSTPs requiring special treatment recipients to pay only a small percentage of the bill for these services. The percentage obligation is based on the Annual Net Worth.
Determination of Annual Net Worth
Annual Net Worth can be determined by completing Part III of the “Medi-Cal Special Treatment Programs - Percentage Obligation Computation” (MC 176 D). The Annual Worth is a combination of:
- The Net Market Value of all nonexempt property, and
- The gross income expected to be received in a 12-month period.
Whose Property/Income to Include
The property and income of the following individuals must be included in the property and income determination:
- The client, AND
- The client’s spouse, AND
- The client’s parents, if he/she is under 21, unmarried, and living with his/her parents.
Exempt Property
Exempt property includes:
- One automobile, if used for the transportation needs of the client or any member of the family.
- The first $40,000 of the net market value (assessed value less encumbrances) of the home of any member stated above.
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Note: The principal residence is NOT exempt.
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- The first $1,000 paid for burial trusts and owned by any member stated above.
- Wedding and engagement rings, heirlooms, clothing, household furnishings and equipment owned by any members stated above.
- Equipment, inventory, licenses and materials owned by any member stated above which are necessary for employment, for self-support, or for an approved plan of rehabilitation or self-care necessary for employment, including motor vehicles.
Related Topics
Determination of Percentage Obligation