Reinstatement of the Medi-Cal Asset Restrict: What Advocates Have to Know

Background

In July 2021, California handed a legislation to get rid of the state’s Medi-Cal asset restrict for Medi-Cal applications for older adults and other people with disabilities.^[1] This modification occurred in two steps: first, efficient July 2022, the asset restrict was elevated to $130,000 for a person (plus $30,000 for every further family member). Second, efficient January 2025, the asset restrict was totally eradicated. Previous to July 2022, to qualify, older adults and other people with disabilities needed to have property beneath $2,000 for full Medi-Cal and underneath $8,400 to be eligible for Medicare Financial savings Applications (MSPs), and needed to show their property annually to stay eligible.

California was the primary within the nation to get rid of asset assessments for all Medi-Cal enrollees, leaving revenue the only real monetary standards for Medi-Cal eligibility. The state did so in recognition that asset limits are restrictive, forcing older adults and other people with disabilities to dwell in deep poverty to entry important care, and lowering long-term financial safety. The elimination additionally made it simpler for eligible individuals to enroll and stay enrolled and to avoid wasting for an emergency. Learn extra right here in regards to the optimistic impacts that eliminating the asset restrict had on low-income older adults and other people with disabilities.

In June 2025, citing budgetary constraints, California reinstated the Medi-Cal asset restrict to $130,000 for older adults and other people with disabilities efficient January 1, 2026.^[2] Every further individual within the family will improve the asset restrict by $65,000. Upon reinstatement, older adults and other people with disabilities will once more be required to doc their property, however not till their first annual renewal, in 2026. Folks over the brand new restrict are usually not eligible for Medi-Cal advantages and could have their protection terminated. New Medi-Cal candidates should meet the reinstated asset restrict to qualify for protection.

With asset limits being reinstated, advocates working with older adults and other people with disabilities might want to know why the principles are altering and what older adults and other people with disabilities might want to do to stay on Medi-Cal.

Asset Restrict Reinstatement FAQs

When will the asset restrict apply?

Beginning January 1, 2026, the asset restrict can be $130,000 for individuals enrolled in Medi-Cal applications with an asset take a look at (see subsequent query). Every further individual within the family will improve the asset restrict by $65,000.

Which Medi-Cal applications could have an asset restrict?

A: All non-expansion Medi-Cal applications, together with the Aged, Blind, and Disabled program, Medi-Cal with a Share of Value (medically needy), 250% Working Disabled Program, Lengthy-Time period Care, and Medicare Financial savings Applications (MSPs). MSPs embody 4 particular applications: Certified Medicare Beneficiary (QMB), Specified Low-Revenue Medicare Beneficiary (SLMB), Certified Revenue (QI), and Certified Disabled Working Particular person (QDWI) applications. MSPs assist low-income Medicare enrollees pay for Medicare out-of-pocket bills together with premiums and cost-sharing. The entire checklist of Medi-Cal applications impacted by reinstatement are listed right here.

Be aware: Youthful adults and kids enrolled in Medi-Cal enlargement classes would not have an asset restrict. Folks on Supplemental Safety Revenue (SSI) linked Medi-Cal should meet the SSI $2,000 asset restrict.

What do present Medi-Cal enrollees have to do?

If somebody has Medi-Cal advantages now, they don’t have to take any motion. Present enrollees might want to confirm their property at their first Medi-Cal renewal in 2026. Present enrollees don’t have to report property earlier than their first renewal until they in any other case report a change in circumstance (akin to a change in revenue or family dimension).^[3] Medi-Cal enrollees should adjust to the Medi-Cal renewal course of and if requested, submit proof to reveal that their property are beneath $130,000 to take care of Medi-Cal eligibility in 2026. Medi-Cal enrollees ought to replace their tackle in the event that they moved so the county Medi-Cal workplace has their appropriate tackle in case they mail any notices or requests for info.

For instance, if an individual’s Medi-Cal annual renewal date is in April 2026, their property can be verified within the renewal course of main as much as April 2026. They don’t have to report or confirm property sooner than their renewal date in the event that they in any other case didn’t have a change in circumstance.

Folks newly making use of for Medi-Cal advantages after January 2026 should report their property of their software. If countable property are over $130,000 for a single individual, the Medi-Cal software can be denied.

What property are counted for Medi-Cal?

The previous guidelines on countable and exempt property that have been in place previous to 2024 will apply after reinstatement.^[4] Countable property embody money, cash in a banking account, second automobiles, or a house or land that the individual doesn’t dwell in. One house is exempt as an asset if the Medi-Cal applicant or recipient lives within the dwelling. Second properties are counted.

Different property that aren’t counted in direction of the asset restrict embody one automobile or private gadgets, akin to televisions, or different home items. Retirement account balances are exempt as an asset if common distributions are obtained. The distributions are thought-about revenue and countable. See the Medi-Cal Normal Property Limitations, MC 007 for extra info on countable property.

What if an enrollee has property over the $130,000 restrict?

Enrollees residing locally. If an enrollee presently has property over $130,000 and lives locally, they will spend down their property to satisfy the $130,000 restrict previous to your renewal date to stay Medi-Cal eligible. A couple of examples embody spending cash on repairs for the house, updating furnishings, prepaying lease, paying off automotive loans, or giving property to different people. If an enrollee has property over $130,000 on the time of their renewal, their Medi-Cal protection can be terminated.

Enrollees enrolled in Lengthy-Time period Care Medi-Cal, for nursing facility stays. Individuals who dwell in Medi-Cal- paid long-term care amenities or who may want Medi-Cal- paid long-term take care of a nursing facility keep sooner or later, should be cautious in how they “spend down” or switch nonexempt property. Impermissibly transferring nonexempt property for lower than honest market worth, like making a gift of money in extra of $130,000, may end up in being ineligible for Medi-Cal- coated long-term take care of a time frame.^[5] Medi-Cal can look again as much as 30 months to find out if somebody impermissibly transferred nonexempt property earlier than requesting Medi-Cal- paid long-term care.^[6] See the California Advocates for Nursing House Reform useful resource for extra info. Once more, if an enrollee is over the asset restrict on the time of their renewal, their Medi-Cal protection can be terminated.

What if an individual transferred property earlier than January 2026?

Any switch of property made between January 1, 2024 and December 31, 2025 is not going to be thought-about in eligibility renewals in 2026. Belongings weren’t thought-about throughout this time interval so what an individual did with their property throughout this time can’t be counted towards them.^[7] Medi-Cal enrollees should not be requested for any proof of asset transfers and what was completed with the cash throughout this era.

Will the asset restrict reinstatement influence Spousal Impoverishment Protections for long-term care?

Sure. The institutionalized partner can preserve as much as $130,000 in property and the neighborhood partner can preserve property as much as the present Group Partner Useful resource Allowance. See Justice in Getting old’s Spousal Impoverishment reality sheet.

What notices and supplies will individuals obtain?

The Division of Well being Care Providers (DHCS) mailed an outreach discover and useful resource on incessantly requested inquiries to all individuals enrolled in applications impacted by the Medi-Cal asset restrict reinstatement. The outreach discover informs individuals of the upcoming change in 2026, which property are counted and that are exempt, and what actions individuals should take, if any. See the Medi-Cal Eligibility Division Info Letter (MEDIL) 25-23 for copies of the outreach notices and incessantly requested questions. These notices have been mailed in October 2025.

What if I’ve Supplemental Safety Revenue (SSI) linked Medi-Cal? What if I’ve CalFresh advantages?

The asset restrict adjustments apply solely to Medi-Cal applications. The reinstatement of the Medi-Cal asset restrict doesn’t change money help guidelines or different public profit applications akin to SSI or CalFresh. Individuals who obtain SSI or different money help should proceed to satisfy the decrease asset restrict for these applications.

What about Deemed SSI teams?

Deemed SSI teams, together with Pickle, Disabled Grownup Little one(ren) (DAC) and Disabled Widow(ers) (DWW) obtain Medi-Cal immediately and never via linkage from one other public profit, akin to SSI. These three teams is not going to be topic to the asset restrict reinstatement in January 2026. California used separate federal authority to get rid of property for the Deemed SSI teams and should submit an 1115 waiver modification to reinstate property for the Deemed SSI teams.^[8] It’s anticipated that California will ultimately reinstate the asset restrict for these teams, however has not completed so up to now.

What about older immigrants with out standing?

Undocumented immigrants enrolled in aged and incapacity based mostly Medi-Cal classes^[9] can even must adjust to the reinstated asset restrict, in addition to different eligibility adjustments enacted within the 2025-2026 funds. This group should pay month-to-month premiums starting July 2027 and can lose Medi-Cal dental protection starting July 2026.^[10] There’s additionally a freeze on new enrollment of undocumented immigrants making use of for Medi-Cal beginning January 1, 2026.^[11] Present enrollees who’re undocumented should preserve Medi-Cal protection and meet eligibility necessities, together with revenue and asset limits. The termination of Medi-Cal advantages for greater than 3 months may forestall re-enrollment.^[12] To study extra, please see MEDIL 25-22 for extra info.

Will Medi-Cal revenue limits change?

No, revenue limits are usually not impacted by the asset restrict reinstatement. The asset restrict reinstatement doesn’t change different Medi-Cal eligibility guidelines, together with revenue ranges or what’s countable revenue. Medi-Cal revenue limits alter yearly based mostly on adjustments to the Federal Poverty Ranges.

What about Property Restoration?

Property restoration is unchanged and continues to use. Federal legislation requires Medicaid (Medi-Cal in California) businesses to recoup funds for sure Medi-Cal advantages, long-term care, and residential and community-based companies for some Medi-Cal enrollees. The reinstatement of the Medi-Cal asset limits is not going to influence or forestall Medi-Cal property restoration. For extra info on property restoration, see the Division of Well being Care Service’s web site and California Advocates for Nursing House Reform’s Medi-Cal restoration info information. For details about the harms of Medicaid Property restoration learn Justice in Getting old’s Difficulty Transient: How Medicaid Property Restoration Perpetuates Poverty.

What in regards to the dwelling fairness restrict for long-term care?

The house fairness restrict doesn’t apply in California but. Beneath H.R.1, California should implement the house fairness restrict by January 1, 2028. To study extra in regards to the dwelling fairness restrict, please learn our H.R.1 Explainer.

Extra Assets

• Division of Well being Care Providers (DHCS) Supplies:
• Without spending a dime, authorized recommendation and counseling on the Medi-Cal Asset Restrict Elimination, contact the Well being Shopper Alliance at 1-888-804-3536; TTY 1-877-735-2929

Endnotes

1. Meeting Invoice 133, including WIC § 14005.62 (July 27, 2021). ↑

2. 2025-26 Well being Omnibus Invoice, Meeting Invoice (AB) 116 Part 59. ↑

3. All County Welfare Administrators Letter (ACWDL) 25-14. ↑

4. See 22 CCR § 50401 et seq. ↑

5. ACWDL 25-18 ↑

6. 22 CCR § 50408; ACWDL 25-18. ↑

7. See Part 88 of AB 116; ACWDL 25-18. ↑

8. Deemed SSI teams are people who could be eligible for Medi-Cal in the event that they have been receiving Supplemental Safety Revenue (SSI) and/or state supplementary funds (SSP) however are not receiving such funds and are thus “deemed” eligible for Medi-Cal. California can’t use 1902(r)(2) authority to ignore property for these teams and submitted an 1115 waiver modification. See CalAIM Approval Letter and STCs for Asset Take a look at Modification (June 2022). ↑

9. Undocumented immigrants positioned in any of the listed Medi-Cal assist codes in ACWDL 25-14 can be topic to the asset restrict after January 2026. ↑

10. See ACWDL 25-13; ↑

11. Id. ↑

12. MEDIL 25-22, pg. 7. ↑