Practice Areas
Estate Planning
Trusts
Probate
Practice Areas
Medi-Cal eliminated asset limits for many applicants in 2025, but income requirements remain strict. In 2026, policy reversal will reintroduce asset caps. California residents relying on Medi-Cal should stay informed and consider legal help to safeguard eligibility and long-term care access.
Medi-Cal is a California government program that provides essential healthcare coverage for individuals with limited income. But because the program is means-tested, recipients must not exceed certain income limits, or they risk losing their insurance.
If you or someone else in your family receives Medi-Cal coverage, or you have concerns about achieving (or losing) eligibility, it’s vital that you understand these guidelines.
In this blog, we’ll look closely at the income and asset limit for Medi-Cal, including the recent massive changes to the standards. Although assets aren’t factored into Medi-Cal eligibility since January 1, 2024, income still plays a major role, and California has recently considered reinstated the old asset limits. It’s critical to know what such a reversal entails and how Medi-Cal recipients can prepare for it.
Medi-Cal (California Medicaid) ensures that children and adults with limited income and means receive the healthcare they need. The program is often an especially important asset for senior adults, because it pays for long-term care services such as nursing home and in-home health care.
Without Medi-Cal, someone in need of long-term care would have to pay out of pocket or rely upon a costly long-term care insurance policy to pay for these services. In many cases, it’s not realistic or possible for someone to pay the thousands of dollars a month necessary to receive this vital care.
Likewise, long-term care insurance premiums are often not affordable. By contrast, Medi-Cal can provide long-term care and other medical coverage at little or no cost to the patient.
California Medi-Cal eligibility assets are the funds and resources that the program once considered (and will consider again) when determining an applicant’s eligibility. These include cash, bank account holdings, a second vehicle, real estate aside from an applicant’s primary home, and certain other resources.
Until 2024, seniors and people with disabilities who qualify for Medicare were subject to the Medi-Cal asset test. This means that the program examined the value of their assets and income to assess program eligibility.
For regular Medi-Cal, a qualifying recipient couldn’t have any non-exempt assets valued at more than $2,000 for individuals and $3,000 for couples. For long-term care Medi-Cal, the qualifying recipient could not possess any non-exempt assets with a total value over $130,000 for an individual and $195,000 for a couple.
Since 2024, the Medi-Cal program hasn’t counted any of an applicant’s assets toward their program eligibility if they are over 65 and disabled, on Medicare, in long-term care, or disabled but still working (regardless of age). Before then, some assets did remain exempt from the program’s means calculation. These included:
In 2026, these exemptions will be reinstated if the old Medi-Cal asset limits will return, as Governor Gavin Newsom has proposed in his speculative 2025-26 budget for health and human services. Those who may be affected by this regulatory reversal should keep a close eye on the proposed budget’s legislative path and consider retaining expert legal counsel for advice on how to proceed.
Approximately 1.7 million Californians are currently enrolled in both Medicare and Medi-Cal, and total Medi-Cal enrollment stands at about 14.9 million people. During 2021, a provision of the state’s budget received approval and eventually eliminated the asset test for many individuals: specifically, those 65 or older and people under 65 with certain disabilities.
The change meant that these Medi-Cal applicants’ financial eligibility is now based solely on income. This represented a major benefit for aging and impaired Californians who are eligible for Medicare and need long-term care.
Medi-Cal income eligibility requires program applicants to earn no more per year than 138% of the federal poverty level. For example, in 2025, this is $21,597 for individuals, $29,187 for couples or households with one adult and a dependent, and $44,367 for a family of four.
When the governor’s pending budget goes into effect, the original asset limit of $2,000 per person will return. It may be best for those with significant assets to protect them from being counted toward Medi-Cal by transferring them into a living trust.
One mistake that people can make is waiting to apply for Medi-Cal. You don’t want to wait until the need for Medi-Cal arises before taking steps to determine your eligibility. The application process can be complicated and time-consuming, and those who require long-term care services often have serious medical conditions that demand immediate attention.
If you think you’ll need to rely upon Medi-Cal, consult with an experienced Medi-Cal planning attorney now to determine your options. Your lawyer can help you evaluate your circumstances and Medi-Cal assets and determine what you must do to get the coverage you need.
At the Law Offices of Alice A. Salvo, our experienced Medi-Cal planning attorneys can help you get started on a solution to your Medi-Cal needs, no matter how the law may change. Please get in touch with us online or by phone to set up a free consultation today.