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What happens to Medicare or MediCal, if you cancel it because you Make Money now and can have your insurance.?

Does medicare make you pay your medical expenses from the past when they covered you? Is there any problems, fines, or surcharge?

Congratulations on your good news!

You might be getting Medicare and Medical confused…lots of people do!

The thing to know about Medicare is that this program is insurance for acute illnesses. This means that if one is enrolled in Medicare Parts A and Part B, bills pertaining to procedures that are deemed “medically necessary” will be paid for. It’s insurance and you are paying the premium if you are over 65. Taxpayers in your state are paying the premium if you are younger than 65 and have a disability.

Medicaid–or MediCal in California–is a health insurance program for the poor or “medically indigent.” Medicaid is only available to folks who meet stringent financial guidelines. If one qualifies for Medicaid–and folks at the state level determine this–then costs of approved medical care will be paid.

I am not sure that Medicaid–or MediCal –would make you pay for your medical expenses from the past if you became able to pay for your own insurance. Actually, I would think the folks would be most pleased about your success and be happy that you no longer need MediCal…

Do you have someone you have a good relationship with who might have informaton about Medicaid rules in California? (Every state’s rules differ!) Perhaps a pastor or a friend who is a social worker? You also might want to confer with a lawyer that has specific expertise in public benefits law. There might be “unintended consequences” to your canceling Medical that you haven’t thought of. For example, some people I know get off of Medicaid only to find that the costs of health insurance, prescription drugs, etc are just too much for their budget. The “system” sometimes just doesn’t make sense!

Also, every state has a low-cost or free legal services program available–you might want to make an appointment with the one in your county. Check the phone book. It might be called something like “California Legal Services” or something like that.

Another resource if you have a disabling condition, would be your local Center for Independent Living. I am betting these folks would be knowledgeable about your question. Yet, if you are really concerned about the possibility of legal consequences, connecting with the public benefit law attorney would be the best move.

If you happen to be 65 or over, I would highly recommend calling your local area agency on aging. If you live in the United States or one of the territories, there is one serving
your area. You can call toll-free 1-800-677-1116 to find out the one serving you. Each area agency on aging has professionals available to provide information and direct you to helpful resources–and these groups are the experts in public benefits and community services that older people need to delay or avoid going to a nursing home. You will most likely find the people there friendly and very helpful.

Congratulations on your achievement! Way to go!
I hope this info helps! Best wishes and good luck!

MONEY NOW!!! How to Make Money in a Recession / Depression. Part 3

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