Medi-Cal's Asset Limit in 2026 and 2027: What California Families Need to Know

If you or a parent rely on Medi-Cal, or may need it to pay for a nursing home or care at home, these changes can affect you. This guide explains what counts, what doesn't, and what to do next, in plain language.

What changed?

From January 2024 through December 2025, Medi-Cal did not look at savings or property for anyone. That ended on January 1, 2026, when California brought back an asset limit for some Medi-Cal members.

Two dates matter:

The 2027 change comes from the state budget approved in June 2026. DHCS lists today's limits as applying through June 30, 2027. The start date could still change, and we will update this guide if it does. Advocates expect many more people to lose Medi-Cal at the lower limit, so 2027 is the year to plan for, not just 2026.

Who does the asset limit apply to?

The limit applies to Medi-Cal members and applicants who qualify because they are:

• 65 or older
• Living with a disability (physical, mental, or developmental), or
• In need of long-term care, such as a nursing home

It does not apply to most adults under 65, to children, or to pregnant people. Their Medi-Cal is based on income only.

Not sure which kind of Medi-Cal you have? Your renewal letter or your county social services office can tell you.

What counts as an asset?

Assets are things you own that could be turned into cash. Medi-Cal counts:

• Cash, and money in checking and savings accounts
• Stocks, bonds, mutual funds, and CDs
• Property you own other than the home you live in, such as a rental property or vacation home
• A second car or other extra vehicles
• The cash value of some life insurance policies

What doesn't count?

These are exempt, meaning Medi-Cal does not count them toward the limit:

• The home you live in (your principal residence)
• One vehicle
• Household items and personal belongings, such as furniture, clothes, and a wedding ring
• Retirement accounts that are paying out regularly (for example, an IRA or pension you receive regular payments from). The account balance isn't counted, but the payments count as income.
• Burial plots and prepaid, irrevocable burial plans, plus up to $1,500 set aside for burial

I'm already on Medi-Cal. Will I lose my coverage?

No one was cut off on January 1, 2026. The asset limit is checked at your annual renewal.

• At renewal, Medi-Cal will ask about your assets. Answer the questions and send in what they ask for by the due date. Missing the deadline is a common reason people lose coverage.
• If your countable assets are under the limit, you keep your coverage.
• If they are over the limit, you may lose coverage unless you lower your countable assets before your renewal date.

Plan now for July 2027. If your renewal falls after July 1, 2027, the $21,000 limit will apply. Someone with $50,000 in savings is fine under today's limit but would be over the 2027 limit.

What if we're over the limit?

You may be able to lower your countable assets by spending money on things you or your family member actually need. Common examples:

• Paying off debts, such as a credit card or medical bills
• Repairs or improvements to the home you live in
• Buying needed items, such as a hearing aid, a wheelchair, or a more reliable car (if you don't already have one)
• Buying a prepaid, irrevocable burial plan

Be careful about giving money or property away. Giving assets to family or selling them for less than they're worth can cause problems if the person later needs nursing home care. See the next section.

The look-back: giving money away before nursing home care

When someone applies for Medi-Cal to pay for a nursing home, Medi-Cal looks back at whether they gave away money or property for less than it was worth. This is called the look-back period. If they did, Medi-Cal may delay nursing home coverage for a while. This delay is called a penalty period.

What families should know:

• Gifts made before January 1, 2026, do not count. The years 2024 and 2025 are not reviewed.
• The look-back is growing. It is shorter for now, but starting July 1, 2026, it grows by one month every month. By July 1, 2028, Medi-Cal will look back the full 30 months.
• It only affects nursing home Medi-Cal. The look-back does not apply to regular Medi-Cal, to most care at home, or to board-and-care (assisted living).
• Small transfers may not cause a penalty. Transfers worth less than about one month of the average private nursing home rate ($14,440 a month in 2026, a rate DHCS sets each year) are not counted.
• Exempt assets can be transferred without a penalty. There are also special protections, for example for transfers to a spouse.

Because the rules are detailed, talk to a free counselor or an elder law attorney before giving away money or property.

What if one spouse needs a nursing home?

California has rules so the spouse who stays at home isn't left with nothing. These are called spousal impoverishment protections.

• The spouse in the nursing home can keep up to $130,000 in countable assets (until July 2027).
• The spouse at home (the "community spouse") can keep additional assets, up to $162,660 in 2026. This amount changes each year.
• The spouse at home may also keep part of the couple's income each month.

California also applies these protections to some care at home, not only nursing homes. The rules are complex, so get help with your specific numbers.

Will Medi-Cal take my parent's house after they die?

This is one of the most common worries. For deaths since January 1, 2017, California can only seek repayment from assets that go through probate, the court process for settling an estate.

• A home held in a living trust or joint tenancy usually does not go through probate, so it is usually protected from recovery.
• A home left by will usually does go through probate, and the state may make a claim.
• The state does not seek repayment if the member is survived by a spouse or registered domestic partner, or by a child under 21 or a child who is blind or has a disability.
• There is also a hardship waiver for homes of modest value.

Setting up a living trust is a legal decision. An elder law or estate planning attorney can tell you whether it makes sense for your family.

What to do now: a checklist

1. 1

   Step 1: Find out which kind of Medi-Cal you or your parent have. Does the asset limit apply?

2. 2

   Step 2: Add up countable assets. Use the lists above. Don't count the home, one car, or belongings.

3. 3

   Step 3: Mark your renewal date on the calendar, and respond to renewal letters on time.

4. 4

   Step 4: Plan for July 1, 2027, when the limit drops to $21,000 for one person.

5. 5

   Step 5: Keep records of large purchases and payments, with receipts.

6. 6

   Step 6: Before giving away money or property, get advice, especially if nursing home care may be needed in the next few years.

7. 7

   Step 7: Talk with family. Make sure someone knows where accounts and documents are, and who can help with paperwork.

Where to get free help

• HICAP (Health Insurance Counseling and Advocacy Program): free, unbiased counseling on Medicare and related coverage. Call 1-800-434-0222.
• Your county social services office: for questions about your Medi-Cal case and renewal. In Los Angeles County, contact the Department of Public Social Services (DPSS).
• Free legal help for older adults: in Los Angeles County, organizations such as Bet Tzedek Legal Services help with Medi-Cal and estate questions. Statewide, CANHR (California Advocates for Nursing Home Reform) publishes guides and a lawyer referral list.
• 211 LA: call or text 211 to find local services.

How Quality of Life Group can help

Our Long-Term Support & Services (LTSS) guidance helps older adults and families understand their options for long-term care, including Medi-Cal, Medicare, and long-term care insurance, and connects you with local programs. We can help you get organized, understand the questions to ask, and find the right professional when you need legal or financial advice.