Family Allocation

Federal and state laws allow for a family allocation to be offset from the income of an institutionalized spouse for the support of a dependent “family member” when there is a community spouse at home.  Family members include only natural or adopted minors or dependent children, or dependent parents or siblings of the institutionalized or community spouse who are residing with the community spouse.  In order for the children to receive the maximum family member allocation, there must be a community spouse. Grandparents who have legal guardianship over grandchildren have been hit hard by this onerous rule, and foster children are not considered “children” or even “family members” for the purposes of long term care Medi-Cal.

The family member base allocation amount, which is used to determine how much income the long-term care beneficiary may allocate to family members, is increased annually.  The current amount, $2,057, is effective July 1, 2018 through June 30, 2019. Of course, the allocation is only possible if the institutionalized spouse has sufficient income left over after the spousal allocation to the community spouse.

The family allocation is calculated separately for each family member.  Any income is deducted from the maximum allocation, and the remainder is divided by 3 to arrive at the total maximum allocation.  If the child or children receive no income, the maximum family allocation amount would be $676.67 for each child.

(source: ACWDL 18-13; Form MC 176 W, section IX)