Loophole in Medi-Cal law could ‘penalize the American Dream’

“I lived the American Dream. I bought a home, it’s a modest home, nothing fancy,” said Pam Cortina, 56, of Sky Valley.

Her home may not be fancy, but it’s hers. She owns it outright. Cortina says it’s all she has.

“I set this all up like ‘Little House on the Prairie’ in 1986,” she said.

When Cortina fell on hard times, she signed up for Medi-Cal, the state’s version of Medicaid. She was unaware of a loophole called the Estate Recovery Program.

“When I saw it I did a double take,” Cortina said. She had already signed the paperwork when she noticed the program. “I’m being penalized for the American Dream.”

If Cortina dies within the next eight years, between the ages of 55 and 64, the state can recover the cost of her care by seizing her home.

“I believe I should be able to leave it to whoever I choose to and now that right has been taken from me,” Cortina said.

Now, she’s putting off medical procedures including a gall bladder surgery. Her fear is the cost of any doctor visits will eventually burden her two children and their families.

“I think my health would improve if the stress of this wasn’t on it,” she said.

Cortina wants state lawmakers to reconsider a bill that would ease that stress for her and millions of other families in California.

The bill, SB-33, authored by State Senator Ed Hernandez of West Covina would limit how much the state could seize from estates.

“This would make it fair for everybody, not just those 55 to 64 who are bearing the costs of this for everybody,” Cortina said.

Governor Jerry Brown vetoed an earlier version of the bill last year. But Cortina hopes that won’t happen again, if more people get behind it.

“They may not know they’re subject to this. As you’re signing up and going hooray I have health coverage, Medi-Cal doesn’t tell you this is part of the program.”

Opponents say taxpayers will have to pick up the tab if estates don’t cover the costs.

Cortina says she understands that argument. She just feels her age group shouldn’t be singled out.

“Other people who are on Medi-Cal don’t owe anything. Only those 55-64, so why not make this recovery program for everybody?”

If the bill doesn’t pass again, Cortina says her American dream could become a nightmare for her family.