Dear Advocate:

I recently applied for Community Based Medi–Cal and I was shocked to read on my Notice of Action that my Share of Cost is more than the income I actually receive. How is this possible? My eligibility worker at Medi–Cal tells me that it has been calculated correctly, but I can’t pay a Share of Cost with money I don’t have.

Confused in El Cerrito

Dear Confused:

Share of Cost for Medi–Cal is calculated using your gross income. This is why your Share of Cost ends up being more than your net income, which is the income you actually receive every month. Rather than trying to change your Share of Cost, you need to change your net income so that you can pay your Medi–Cal Share of Cost. You can do this by stopping the withholding of taxes from your income. In order to do so, fill out Form W–4P (“Withholding Certificate for Pension or Annuity Payments”) to stop the IRS from withholding federal taxes. You can get this form from any tax specialist (H&R block, for example). For withholding state taxes, contact your pension plan and request a “California State Income Tax Withholding Election Form.” Once these deductions are stopped, the problem with counting income that you don’t actually receive should be fixed.