California’s 2026 Medi-Cal Asset Rule Changes:
What Families Need to Know
As of January 1, 2026, California started to consider certain assets when deciding eligibility for many Medi-Cal programs, including long-term care Medi-Cal. This is an important change because California had eliminated the Medi-Cal asset limit in 2024.
For families planning for nursing home care or other long-term care needs, the main point is simple:
Assets may matter again, and planning ahead is important.
The Basic 2026 Asset Limits
Starting in 2026, the basic asset limits are:
| Household Situation | 2026 Asset Limit |
|---|---|
| One person (or ill-spouse) | $130,000 |
| Couple, if both need long-term care | $195,000 |
| Well spouse at home, known as the Community Spouse Resource Allowance | $162,660 (adjusted annually) |
| Each additional dependent family member | +$65,000 |
These limits generally apply to non-MAGI Medi-Cal programs, including many programs for people who are age 65 or older, blind, disabled, or receiving long-term care in a nursing home.
Not Every Asset Counts
Medi-Cal does not count every asset. Some property may be exempt, meaning it does not count toward the asset limit. Common examples may include the primary residence, household goods, personal belongings, one vehicle, certain burial arrangements, and some retirement accounts depending on the facts.
For many families, the home is the most important asset. A home is often protected if it is treated as the person’s principal residence, but the paperwork and how questions are answered can matter.
Retirement accounts also require special attention. Some IRAs, pensions, or retirement accounts may be treated differently depending on whether the account belongs to the Medi-Cal applicant or the spouse at home, and whether regular payments are being taken.
Be Careful With Transfers and Spend-Downs
Transfers made in 2026 and later can create problems if a person later enters a skilled nursing facility and needs Medi-Cal long-term care coverage. Medi-Cal may review certain transfers made during a look-back period and may impose a penalty if non-exempt assets were given away improperly.
If countable assets are above the limit, families may have options, such as setting up an irrevocable trust, paying medical bills, paying debts, making home repairs, purchasing an irrevocable burial plan, or using other planning tools. However, spend-down planning should be done carefully because the wrong step can affect eligibility.
What Families Should Do Now
Families who’s loved ones are in or need long term care should speak with an attorney knowledgeable with Elder Law and the Medi-Cal rules, they will need to gather and review financial records before applying for Medi-Cal, completing a Medi-Cal renewal, selling property, transferring assets, or making major spend-down decisions. Helpful documents include bank statements, investment and retirement account statements, deeds, mortgage records, vehicle information, life insurance information, burial plan documents, trust documents, powers of attorney, and any Medi-Cal notices.
If Medi-Cal denies or terminates benefits, a fair hearing may be available. In many cases, hearing deadlines are short, so families should act quickly after receiving a written notice.
Bottom Line
The return of Medi-Cal asset limits does not mean everyone with assets will lose eligibility. It means families need to be more organized and should review their plan before a Medi-Cal application, renewal, or nursing home admission creates urgent decisions.
This article is for general educational purposes only and is not legal advice. Every family’s situation is different. Before transferring assets, changing title to property, selling a home, or spending down significant funds, speak with an attorney familiar with Elder Law and Medi-Cal planning.