Legal Question in Credit and Debt Law in California

You need to contact someone who specializes in the field of Medi-Cal law, as it is a very specialized field, and I doubt that anyone who works in that field is on this forum. I believe from your post that you understand that the reason you are repaying the debt is because you inherited her assets. Your other option was to liquidate the asset to repay her creditors to the extent that the sale of her assets could, but it is too late now, and it sounds as if you are under an administrative order to repay the debt. I cannot comment as to how they have been applying the payments, except to say that you should review that with an accountant or CPA - someone sufficiently familiar with loan repayment schedules to determine if the State is calculating the balance owed properly. As far as the interest rate is concerned - this is not a mortgage, this is essentially an unsecured debt. As such, 7% is less-than they could have recovered if they sued you and obtained a judgment. Finally, yes it is up to you, or was up to your Aunt to investigate the bills being paid on her behalf. The insurer (Medi-Cal) pays bills as presented by physicians. They do not have the staff, nor frankly the obligation to ensure that your Aunt actually received the treatments that her physicians allege she received. If you can prove that the physicians improperly billed Medi-Cal, then you may have an action against them on behalf of her estate to recover what they over-billed, but that is entirely up to you.

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