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Health Law Bulletins

Tax garnishment qualifies as income when determining Medi-Cal eligibility.

March 10, 2026

Abney v. State Dept. of Health Care Services (Jan. 31, 2024) __ Cal.App.5th __ [2024 WL 356944]

The Social Security Administration began withholding money from Debra Abney’s monthly Social Security payment to satisfy an IRS debt. Consistent with advice from the California Department of Health Care, which administers Medi-Cal, San Francisco counted the wage garnishment amount as income “actually available to meet [her] needs” and on that basis found Abney to be ineligible to receive Medi-Cal benefits without sharing the cost. The trial court denied her petitions seeking administrative writ relief from the eligibility decision. Abney appealed.

The Court of Appeal affirmed, holding that (1) the garnishment amount is “actually available” even if it never passes through Abney’s hands, as long as the money actually exists (rather than being assumed or imputed) and (2) the garnishment “meets [Abney’s] needs” because paying off her IRS debt financially benefitted her.

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