As of January 1, 2026, California will reinstate asset limits for certain Medi-Cal programs. For the past two years, Medi-Cal eligibility has been based mostly on income. Starting in 2026, applicants and current beneficiaries will once again need to report both income and assets to qualify.
Key Changes
- Asset limits return: $130,000 for individuals, $195,000 for couples, plus $65,000 for each additional household member.
- Exempt assets: The same exemptions used before 2024 will apply — your primary home, one vehicle, personal items, retirement accounts (if you’re receiving regular payments), small life-insurance policies, and prepaid burial plans.
- Timing: New rules apply to new applications submitted on or after January 1, 2026, and to current beneficiaries at their next renewal or when they report a change in circumstances.
- Transfers: Gifts or transfers made during 2024 and 2025 will not cause penalties, but transfers after January 1, 2026 may affect eligibility for long-term care coverage.
Why It Matters
For many California families, Medi-Cal provides vital help with the cost of long-term care — but eligibility is complex, and planning ahead can prevent major financial and emotional stress later. Proper trust planning, spousal protections, and strategic asset management can ensure that you or a loved one remain eligible without losing valuable resources.
Medicare vs. Medi-Cal: What’s the Difference?
It’s a common question we hear: Doesn’t Medicare cover nursing homes? Unfortunately, not long-term. Medicare only pays for up to 100 days of skilled nursing care after a hospital stay, and even then, copayments apply after day 20. Medi-Cal, on the other hand, is a need-based program that can cover ongoing long-term care for those who meet the financial and medical requirements.
How to Prepare
If you or your parents may need long-term care in the future, now is the time to review your estate plan and ensure your assets are protected under the upcoming Medi-Cal rules. Our team at The Wagon Legacy is here to guide you through proactive planning so you can preserve both your care options and your family’s legacy.
📞 Have questions or need to update your trust? Schedule a consultation today.
Source: California Advocates for Nursing Home Reform (CANHR). Read their full fact sheet here:
2026 Asset Limit Reinstatement – CANHR FAQ (PDF)