Starting January 1, 2026, significant changes are coming to Medi-Cal asset limits, which will impact how Medi-Cal eligibility is determined for many people. If you or a loved one is navigating long-term care or applying for Medi-Cal, it is crucial to stay informed about these upcoming adjustments.
What is changing?
Starting January 1, 2026, Medi-Cal will consider assets (what you own) when reviewing eligibility for older adults and people with disabilities as part of the application and renewal process. The new limits, returning to 2022 levels, are:
- $130,000 for an individual; and
- $65,000 for each additional household member
*It is important to note that for non-Modified Adjusted Gross Income (MAGI) programs, Medi-Cal does not always count the people who live in the home for their definition of household. See more at Who’s included in your household | HealthCare.gov and M A G I – Mcal – Hhsize Flow Chart V 1 2 – 20140815 Ten.
What assets will be counted in 2026?
Not all assets count toward your Medi-Cal eligibility. Some are considered “exempt” and will not be counted. These include:
- Your primary residence
- One car
- Household goods and personal effects
- Jewelry
- IRAs/Work pension accounts (if you are receiving regular payments)
- Whole life insurance (face value $1,500 or less)
- Term life insurance
- Burial plot
- Prepaid irrevocable burial plan
- $1,500 in designated burial funds
- Other real property used for business or self-support
- $130,000 property reserve
When do I need to report my assets?
For those applying for Medi-Cal on or after January 1, 2026, you will need to report your assets as part of your eligibility process.
Current Medi-Cal beneficiaries will be asked to report their assets during their annual renewal in 2026 or earlier if there is a change in circumstance (CIC) redetermination. A CIC includes, but are not limited to changes in income, expenses, household, tax filing status, immigration status, and property. For more information, please see Which income and household changes to report | HealthCare.gov.
For couples that are married or have registered domestic partners
If you qualify for Spousal Impoverishment protections, the Medi-Cal spouse can keep $130,000 in their name and the “community” spouse (the spouse without Medi-Cal) can keep $157,920 (2025). For more information and to see if you qualify, please see Using California’s Spousal Impoverishment Rule for Home and Community Based Services – CANHR and FS_MEDICAL_Spousal_Impoverishment_HCBS.pdf.
If you are in the same household and do not qualify for Spousal Impoverishment protections, you will be subject to an asset limit of $195,000 ($130,000 + $65,000).
Can I transfer my assets?
California’s Department of Health Care Services has not shared information about whether there will be a “lookback” period for transfers made in 2025.
However, beginning in 2026, Medi-Cal will begin to consider transfer penalties for individuals who transfer properties to become eligible for Long Term Care Medi-Cal. Penalties will only apply to transfers larger than the Average Private Pay Rate of $13,656 (as of 2025).
For more information, please visit 2026 Asset Limit Reinstatement Frequently Asked Questions – CANHR.
