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My mom has blue cross and medicare for insurance. Is having two insurance a issue for being denied medi-cal because I'm losing money staying home with her and I was told ihss is the only ones who pay caregivers

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You can appeal a Medicaid application decision. There should be instructions how to do so on the denial notification. Was the application missing information that you now have? Having two insurances is not an issue.

Perhaps it would be worthwhile to contact a lawyer who specializes in Elder Law to help you with the appeal process.
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California has a pretty straightforward IHSS to enable paid caregiving if deemed necessary. The elder would need to be evaluated as to what caregiving is needed & if feasible to be done at home & they will fully need to qualify for Medicaid. You as a caregiver have to go through a training program of some sort. Each county administers their program - so Google your county & IHSS to get details.

The pay depends on COC in your area & what caregiving you do - seems to be about $ 9 - $10 hr/20 hrs a week average. So under 10K a year. All above board with taxes, etc too. It will NOT be based on what your income was from your old job. It is below a living wage but I'd imagine the IHSS expects the caregiver is living for free at the elders home, benefits from the elder's income in other ways (food, utilities) or has other income. Most other states have NO program set up to pay for family caregivers at all - most states fully expect family to do all care for free, so IHSS is a good thing for CA families.
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igloo572, Minnesota is another state that allows (seems to encourage, actually) family members to be paid for caregiving. (Just FYI)
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