u/Contentious_Student

My grandma recently went to a hotel with my aunt who was briefly visiting from Korea and wanted to explore. For fun, they both decided to play an 80-cent slot game, and on her second try, she hit the jackpot of $12,900. She didn't know of the implications before she claimed the prize, and I only found out after the fact. It felt like good news at the moment, but turned into a nightmare when I realized that jackpot winnings count as income.

Here's the situation. My grandma and grandpa (both over 80 years) are on Medi-Cal (California) because both are low-income immigrants. My grandma receives CAPI payments and my grandpa receives SSI, both are monthly. They're also on Section 8 housing, which adds another layer to our problem, but that's a whole separate issue.

I went to report the income change to her Medi-Cal and CAPI caseworker today. She told me that my grandma's CAPI will be terminated until she spends down the amount and we provide proof, but once she shows proof she will be re-eligible. Then she told us we only need to spend down the after-tax amount. However, she also said her Medi-Cal would be completely unaffected because they're significantly below the asset threshold, so the plan will remain the same.

...Which directly contradicts everything I've researched. From what I've read, the government considers the full $12,900 as income, meaning we'd need to account for all of it by spending down to keep the full coverage, even though we haven't paid taxes on it yet and won't until the end of the year. We'd essentially be spending money we technically still owe.

I want to trust the caseworker, but I pulled an all-nighter researching and what she told us was clearly the opposite of what I found. I'm genuinely unsure whether she gave us accurate information.

What makes this so stressful is the timing. My grandma is currently awaiting surgery for her colon. My grandpa needs 24/7 IHSS care and has ongoing dental expenses. Losing Medi-Cal, even for just one month, could be catastrophic for our family. I've also heard that Medi-Cal is becoming harder to get approved for, so if her case gets terminated because of this lump sump, and I have to reapply for both of them, I'm scared they won't get back in as easily.

My parents are both working full-time and barely making ends meet. I'm just trying to hold everything together for them.

Will my grandma and grandpa lose Medi-Cal this month only, and automatically requalify to their original full coverage once the amount is spent down? What exactly counts as a valid spend-down? Is there any risk her case gets fully terminated rather than just temporarily suspended?

Any guidance, personal experience, or even just pointing me toward the right resources would mean so much to me.

My grandma recently went to a hotel with my aunt who was briefly visiting from Korea and wanted to explore. For fun, they both decided to play an 80-cent slot game, and on her second try, she hit the jackpot of $12,900. She didn't know of the implications before she claimed the prize, and I only found out after the fact. It felt like good news at the moment, but turned into a nightmare when I realized that jackpot winnings count as income.

Here's the situation. My grandma and grandpa are both on Medi-Cal because both are low-income immigrants. My grandma receives CAPI payments and my grandpa receives SSI, both are monthly. They're also on Section 8 housing, which adds another layer to our problem, but that's a whole separate issue.

I went to report the income change to her Medi-Cal and CAPI caseworker today. She told me that my grandma's CAPI will be terminated until she spends down the amount and we provide proof, but once she shows proof she will be re-eligible. Then she told us we only need to spend down the after-tax amount. However, she also said her Medi-Cal would be completely unaffected because they're significantly below the asset threshold, so the plan will remain the same.

...Which directly contradicts everything I've researched. From what I've read, the government considers the full $12,900 as income, meaning we'd need to account for all of it by spending down to keep the full coverage, even though we haven't paid taxes on it yet and won't until the end of the year. We'd essentially be spending money we technically still owe.

I want to trust the caseworker, but I pulled an all-nighter researching and what she told us was clearly the opposite of what I found. I'm genuinely unsure whether she gave us accurate information.

What makes this so stressful is the timing. My grandma is currently awaiting surgery for her colon. My grandpa needs 24/7 IHSS care and has ongoing dental expenses. Losing Medi-Cal, even for just one month, could be catastrophic for our family. I've also heard that Medi-Cal is becoming harder to get approved for, so if her case gets terminated because of this lump sump, and I have to reapply for both of them, I'm scared they won't get back in as easily.

My parents are both working full-time and barely making ends meet. I'm just trying to hold everything together for them.

Will my grandma and grandpa lose Medi-Cal this month only, and automatically requalify to their original full coverage once the amount is spent down? What exactly counts as a valid spend-down? Is there any risk her case gets fully terminated rather than just temporarily suspended?

Any guidance, personal experience, or even just pointing me toward the right resources would mean so much to me.

I was packing my stuff away, and realized that I have some left over stuff that won’t fit the boxes. Is anyone willing to store a duffel bag full of items over the summer? i would really appreciate the help!