QIM 34 | Part 1 of 5 | Elder Law & Medi-Cal Planning
Asset limits returned January 1, 2026. The number almost nobody is planning around arrives July 1, 2027.
A conversation between Ava and Michael
Ava:
Michael, I hear California eliminated the Medi-Cal asset test. Then I hear it came back. Which is it?
Michael Benavides, Esq.:
Both, in that order — which is exactly why families are getting caught. California phased the asset test out and eliminated it entirely on January 1, 2024. For two years there was no limit. On January 1, 2026 it returned, at 2022 levels.
Ava:
Which are?
Michael Benavides, Esq.:
$130,000 for an individual. $195,000 for a couple in one household
— that is $130,000 plus $65,000 — and $65,000 for each additional household member. Those figures come from DHCS and are confirmed by CANHR's fact sheet.
Ava:
That is more generous than I expected.
Michael Benavides, Esq.:
It is, and that is the trap. DHCS publishes that this limit runs through June 30, 2027. Starting July 1, 2027, it drops to $21,000 for one person and $31,000 for two.
Ava:
From $130,000 to $21,000. That is not a tweak.
Michael Benavides, Esq.:
An 84% reduction, on a published date. Families read the 2026 headline, see six figures, and conclude they have room. They have room for roughly eighteen months.
Ava:
I want to be careful here, because this is a complicated area and I do not want anyone reading a date off a blog post and treating it as settled. Is that July 2027 number locked?
Michael Benavides, Esq.:
Fair, and no — it is scheduled, not immutable.
It sits in statute and DHCS has published it, but asset limits in this state have moved twice in four years already. A future budget or bill could change it again. Plan for it, do not bet the house on the exact figure surviving untouched.
Ava:
Who does the limit even apply to?
Michael Benavides, Esq.:
DHCS names four groups: 65 or older, people with a disability, people who live in a nursing home, and families whose income is too high to qualify under federal tax rules. In plainer terms, the non-MAGI programs. A working adult on expansion Medi-Cal is generally untouched.
Ava:
And what actually counts?
Michael Benavides, Esq.:
CANHR's exempt list is more detailed than most families expect: the primary residence, household goods and personal effects including jewelry, one car, IRA and pension balances when taking periodic payments, term life insurance, whole life with face value of $1,500 or less, a burial plot and prepaid irrevocable burial plan plus $1,500 in burial funds, and property used for business or self-support. Cash, bank accounts, second homes and second vehicles count.
Ava:
When does someone have to report?
Michael Benavides, Esq.:
New applicants report on any application filed on or after January 1, 2026. Existing beneficiaries report at their next annual renewal after that date. CANHR gives the useful example: a December renewal month means nothing is reported until December 2026. Find your renewal month — it is your actual deadline.
Disclaimer
Attorney advertising. General information about California law, not legal advice; reading it creates no attorney-client relationship. Medi-Cal eligibility is highly fact-specific, published figures including the asset limits, the Community Spouse Resource Allowance and the Average Private Pay Rate are updated periodically, and some points in this series are expressly identified as unsettled. Confirm current rules with DHCS or your county Medi-Cal office before acting. Michael Benavides, Esq. — California State Bar No. 270714. Ava Benavides is an editorial brand voice, not an attorney, and does not provide legal analysis.
