In 2021, the state of California passed a law intended to remove Medi-Cal assets limits. In the first phase, asset limits were increased, and in the second phase, effective January of 2025, the asset limits were fully eliminated. However, in June of 2025, the asset limits were reinstated for older adults and people with disabilities effective January 1, 2026. If you are enrolled in Medi-Cal, or planning to apply, it’s important to understand these limits and how they will affect you.
What Is Medi-Cal?
Medi-Cal is the state of California’s version of Medicaid and is overseen by the Department of Health Care Services (DHCS). It is for low-income residents of California and their families and makes no to low-cost health care coverage accessible to many people who cannot afford private health insurance.
Medi-Cal Asset Limits 2026
As of January 1. 2026, the asset limits are $130,000 for persons enrolled in specific programs that require an asset test, with an additional $65,000 added for each individual in the household.
Assets Counted in the Medi-Cal Asset Limits
Assets that are counted in the asset limits include:
- Bank accounts
- Cash
- Second home
- Second vehicle
- Other financial resources
Assets that are not counted include:
- The home in which you live
- Your primary vehicle
- Household items
- Retirement accounts as long as you are getting regular distributions or payments
Who Do Medi-Cal Asset Limits Apply To?
The asset limits do not apply to everyone enrolled in Medi-Cal. They apply if you are:
- Are 65 or older
- Have a disability
- Live in a nursing home
- Are in a family that makes too much money to qualify under federal tax rules
Medi-Cal Programs with Asset Limits
In 2026, most modified adjusted gross income (MAGI)-based Medi-Cal programs, which include coverage for adults ages 19–64, children, and pregnant women, are not subject to asset limits. Eligibility for these groups is based strictly on income and household size,
However, certain non-MAGI Medi-Cal programs do include asset limits. These generally apply to individuals who qualify based on age (65+), blindness, or disability. These programs typically use monthly income and asset limits when determining eligibility.
Additionally, some long-term care Medi-Cal programs, including nursing home coverage and certain home and community-based services, may require review of assets to determine eligibility.
What to Do if You Are a Current Medi-Cal Enrollee
If you are currently enrolled in Medi-Cal, you don’t need to do anything until your renewal date. On your renewal date, you will have to report your assets if your program is subject to asset limits. If you are a new applicant, you’ll have to report your assets on your application. In either case, you’ll need to verify your assets with bank statements or property records.
What if You Are Over the Asset Limits?
If you are over the asset limits, you can give away or sell assets to meet eligibility requirements. However, if you are currently in a nursing home or may need long-term care, giving away or selling assets for less than they are worth, it may delay your long-term care coverage.
You can also spend down your assets by:
- Paying medical bills
- Purchasing household items
- Catching up on bills or paying down debts
- Paying for school
- Renovating or repairing your home
Other Medi-Cal Eligibility Requirements
To be eligible for Medi-Cal, you must live in California and meet a few additional eligibility requirements
- Income Limits
- For adults, the limit is 138% of the federal poverty levels (FPL), which is $21,597 per year for one person, $44,367 per year for a family of four.
- For children 19 and under, the limit is 266% of FPL, which is $41,629/year for one, $85,519/year for a family of four.
- For pregnant women, the limit is 322% FPL, or up to 213% FPL depending on certain rules.
- Immigration Status: You must be a citizen or meet certain immigration requirements. However, some benefits are available regardless of status, particularly for children and pregnant women.
Other 2026 Key Medi-Cal Changes
It’s important to understand some other key changes to the Medi-Cal program in 2026.
- Income will now be verified twice per year with pay stubs or tax returns.
- New enrollment will be frozen for undocumented immigrants in some cases. Existing members may also be affected by this change.
- Asset exemptions have been added to include your home, one vehicle, and some retirement funds.
In Closing
Asset limits for Medi-Cal have been reinstated for certain programs, but you may be able to qualify by reducing your assets. At Health Service Alliance, we are proud to accept Medi-Cal. If you don’t have Medi-Cal or other insurance but need care, we can help you to find coverage options that meet your needs without delaying treatment. We are dedicated to providing compassionate, personalized, and accessible care regardless of your ability to pay. Reach out today to learn more.
