Medi-Cal Asset Limits Are Coming Back in 2026: Here’s What That Means
After a brief period without them, asset limits for certain Medi-Cal programs in California are scheduled to return beginning January 1, 2026. This change may affect older adults and individuals with disabilities who rely on Medi-Cal—or plan to in the future.
What’s Changing?
Medi-Cal is California’s version of Medicaid, offering healthcare coverage to qualifying residents, including long-term care services. For many years, eligibility for some Medi-Cal programs was based not only on income but also on the applicant’s assets. These limits were lifted in 2024, but starting in 2026, they’re coming back for several programs.
This means that, depending on the program, an individual may need to stay below a certain asset threshold to qualify or remain eligible.
Who Might Be Affected?
These changes primarily apply to non-MAGI Medi-Cal programs. MAGI Medi-Cal—which is based on income only—is expected to remain unaffected. Other specialized programs may also continue to follow separate rules.
Current Medi-Cal recipients won’t need to report their assets right away. In most cases, asset limits will come into play during their next annual renewal or if there’s a change in circumstances.
What Is Considered an Asset?
Not all assets are treated the same under Medi-Cal guidelines. Some items, like your home, a personal vehicle, or certain retirement accounts, might not count against the asset limit. Other savings or property might be considered.
The rules about what’s “countable” or “exempt” can be nuanced, and they may vary depending on your situation.
What About Transfers or Gifts?
There are also rules around giving away assets in an effort to qualify for Medi-Cal—especially for those seeking coverage for long-term care in a skilled nursing facility. These rules may involve a look-back period and could result in temporary ineligibility. How these transfer penalties will be applied under the new rules is still being clarified.
Why Is This Happening?
The decision to reinstate the asset test is tied to a variety of factors, including state budget concerns, federal funding, and increased enrollment in Medi-Cal programs. While the full impact of the change is still unfolding, it signals a return to a more traditional eligibility structure.
Looking Ahead
As the January 2026 date approaches, more guidance is expected to be released by the state. Those who might be impacted—especially older adults and their families—may want to stay informed and revisit their plans as more details become available.
While Kaminski Law Group does not assist with Medi-Cal eligibility planning, we have trusted partners we can refer you to if you need guidance.
