Many seniors and disabled people in California who need long-term care will soon face a dramatic reduction in assets they can keep and still qualify for Medi-Cal.
Starting in July 2027, the individual limit will fall from $130,000 to $21,000, while the limit for couples will drop from $195,000 to $31,000 when they apply for Medi-Cal – California’s Medicaid program – or renew their coverage. That’s an 84% decrease.
The rules will primarily affect people who qualify because of their age, disability or need for nursing-home or other long-term care.
The change is a turnaround from the approach the state adopted in 2022. Before that year, Medi-Cal assets were very low. Many enrollees could have only $2,000 in countable assets, or $3,000 for a two-person household – numbers that hadn’t been changed or adjusted for inflation since they were implemented in 1989.
Those limits left people in profound poverty, said Cindy George, the senior personal finance editor for prescription comparison cost website GoodRx.
“Advocates for seniors and people with disabilities had long pushed for higher Medi-Cal asset limits – or none at all – to allow individuals and families to keep their affordable health insurance without financial insecurity,” George said.
In 2022, the limits increased substantially: To $130,000 for an individual plus $65,000 for each additional family member. The asset limit was eliminated entirely in 2024.
California then revisited that decision, and in January 2026, the $130,000 individual and $195,000 married couple asset limits were put back in place. But that’s changing again beginning on July 1, 2027, to a much lower limit: $21,000 for one person, $31,000 for a couple, and another $1,550 for each additional qualified person who lives in your house.
The modifications were part of Gov. Gavin Newsom’s efforts to balance the state budget amid soaring Medi-Cal costs and billions in cuts from the federal government due to the GOP’s tax and spending megabill signed by President Donald Trump in July 2025.
These changes, along with others at the state and federal level to Medicaid programs, could have broader impacts on all Californians, said Kristof Stremikis, the director of market analysis and insight for the Oakland-based nonprofit philanthropy California Health Care Foundation. A report from the foundation found the policy changes could lead to up to 2 million Californians losing health care coverage.
“Medi-Cal finances so much of our delivery system here in California,” he said. “I think you’re going to start to see access challenges for Medi-Cal enrollees, but even more broadly, you’re really going to see strain on the system that shows up for everyone in longer waiting times, difficulty finding doctors, that type of thing. We’re in for a rough ride.”
If you or a family member is on Medi-Cal, here’s what you need to know about the new eligibility requirements.
Who is impacted by California’s 2027 Medi-Cal asset limit changes?
The new limit doesn’t apply to everyone on Medi-Cal. People who use the program under federal modified adjusted gross income rules, like many children, pregnant people, parents and working-age adults, are not subject to asset tests.
These changes will primarily impact people who are enrolled in Medi-Cal outside the federal MAGI rules, including people who are 65 or older, are blind, have a disability, live in a nursing home or receive other long-term care services paid for by Medi-Cal, or who use a Medicare Savings Program.
What’s changing for Medi-Cal asset limits?
Medi-Cal eligibility is determined in part by your assets. Here’s a list of current asset limits and what they’re changing to in July 2027.
Asset limits
What’s counted:
- Money in your bank account
- Cash
- Secondary homes
- Second vehicles
- Other investments or financial resources
The current limit for the total value of those assets is $130,000, plus another $65,000 per person who lives in your home for up to 10 people.
The new limit will be $21,000 for one person, another $10,000 for a spouse, and then another $1,550 per each additional qualified person in your home, up to 10 people total. Adult children, roommates and some others do not qualify.
California has a program called Spousal Impoverishment that can protect some additional assets from being counted toward eligibility for a spouse or domestic partner.
Non-countable assets
There are certain types of assets that typically aren’t counted against Medi-Cal eligibility. These include:
- A primary residence
- One car
- Household goods and personal items in the primary residence
- Retirement funds, like 401(ks) and IRAs, if regular payments are being received from them
Though primary residences are not counted for eligibility, the state can pursue an estate to recover certain costs after death, said Mark Gilfix, an estate planning and elder law attorney based in Palo Alto. He said a primary home properly titled in a living trust generally keeps it out of probate, shielding it from the estate recovery process.
What do people currently on Medi-Cal need to do?
Not all enrollees will have their assets tested on July 1 of next year; the asset limits will be reported and assessed on a rolling basis when people renew their coverage.
To maintain eligibility for the program, participants will need to transfer or spend down assets to the new limits, Gilfix said, and administrators may review where those assets went to make sure transactions were made appropriately. Giving away or selling assets for less than they’re worth can delay long-term care coverage, according to an FAQ from the state Department of Health Care Services. Working with a qualified financial adviser or elder law attorney may help you protect eligibility.