California reinstated Medi-Cal asset limits in 2026. Learn about the new $130K limit, eligibility requirements, transfer penalties, and how to protect your family's assets while qualifying for long-term care coverage.
If you or someone you care about currently relies on Medi-Cal for long-term care - or you're planning ahead to ensure it will cover nursing home costs down the road - January 2026 brought significant changes to eligibility requirements. After two years without asset limits, California has reinstated asset limits and lookback periods.
While these changes are significant, they're navigable with the right guidance. Let's walk through what happened and what it means for you.
What Changed (And Why It Matters)
For the past two years, you could have substantial savings and still qualify for nursing home coverage. Many families enrolled during this time without worrying about how much was in the bank.
That ended on January 1, 2026. Now there are thresholds that affect Medi-Cal long-term care eligibility.
The New California Medi-Cal Asset Limits
Household Size | Medi-Cal Asset Limit (2026) |
Individual | $130,000 |
Couple (both need coverage ) | $195,000 |
Each additional household member | Add $65,000 |
If you're already receiving Medi-Cal benefits, you're covered until your annual renewal in 2026. That's when the county will ask for updated financial information.
If your assets are above the limit, it is important to connect with a California elder law attorney on strategies to meet the requirements while preserving value.
Understanding Countable vs. Exempt Assets
Not everything you own counts toward that $130,000 limit. Understanding the difference between countable and exempt assets is crucial for Medi-Cal long-term care planning.
Countable assets (count toward the $130,000 limit):
Bank accounts and cash savings
Stocks, bonds, and mutual funds
Second vehicles
Investment properties and rental real estate
Retirement accounts not in payout status
Exempt assets (don't count toward the limit):
Your primary home residence
One vehicle of any value
Household items and personal belongings
Retirement accounts (IRAs, 401ks) actively paying out regular income
Burial plots and prepaid funeral arrangements
Life insurance with face value under $1,500
The 30-Month Lookback Period Returns
California has brought back the 30-month "lookback period" for asset transfers made on or after January 1, 2026. This is one of the most significant Medi-Cal long-term care changes affecting nursing home eligibility.
What does this mean? If someone gives money to family members and then applies for Medi-Cal nursing home coverage, those transfers may affect eligibility. The state reviews transfers made in the 30 months before application to determine if penalties apply.
Here's what families should know about Medi-Cal transfer penalties:
Transfers made before January 1, 2026: Generally won't trigger penalties under the new rules, but keep documentation (bank statements, canceled checks) that proves the timing.
Transfers made after January 1, 2026: May create a penalty period where Medi-Cal won't pay for nursing home care. This includes:
Gifts to children or grandchildren
Financial help with family expenses
Transfers to trusts or other entities
Selling assets for less than fair market value
The good news is that certain transfers remain protected under California Medi-Cal rules, such as transferring your home to a spouse or to an adult child who lived in the home and provided care for at least two years (the "caregiver child exception").
Protect your family’s hard earned savings and get peace of mind — starting today.
Spousal Impoverishment Protections
One of the most common concerns families have is: what happens to the spouse who stays home when the other needs nursing home care?
California has spousal impoverishment protections in place. The Community Spouse (the one remaining at home) is typically allowed to keep:
Approximately $157,920 in assets (Community Spouse Resource Allowance - CSRA)
All of their own income
Potentially a portion of the nursing home spouse's income (Minimum Monthly Maintenance Needs Allowance - approximately $3,948/month)
The family home
How Families Can Meet Asset Limits
When assets exceed the Medi-Cal limit, families can work with an elder law attorney on various strategies—some focus on converting countable assets to exempt ones, while others involve asset protection through trusts or qualifying transfers.
Common strategies attorneys use include:
Asset conversion: Converting countable assets (like cash) into exempt ones (like home improvements, a vehicle, prepaid funeral arrangements, or paying off debts)
Spousal transfers: Transfers between spouses are typically exempt from penalty periods
Caregiver child exception: In specific situations, transferring a home to an adult child who provided care may be penalty-free
Asset protection trusts: Irrevocable trusts like Medi-Cal Asset Protection Trusts or Special Needs Trusts can protect assets when properly structured and timed
Each strategy has specific legal requirements, timing considerations, and trade-offs. What works for one family may not be appropriate for another, which is why personalized legal guidance from an elder law attorney is essential.
Your Medi-Cal Planning Roadmap
These changes involve a lot of moving parts, and figuring out where to begin can feel daunting. Here are some steps you can take as a helpful starting point.
1. Get a clear picture of your finances
Look at your bank accounts, investments, and other assets. This helps you understand where you stand relative to the asset limits.
2. Find your Medi-Cal renewal date
If you or your loved one is already on Medi-Cal, find out when the 2026 annual renewal is scheduled. This becomes your planning timeline.
3. Gather your paperwork
Pull together bank statements from late 2025 and early 2026, especially for any large transfers or gifts. Having these ready can answer questions about timing if they come up.
4. Review your estate documents
Many Power of Attorney and Trust documents are written without Medi-Cal planning in mind. An attorney can look at yours and let you know if updates would help your situation.
5. Understand what's possible with your home
Before making any decisions about transferring property, talk to a California Medi-Cal planning attorney. There are valuable exceptions (like the "caregiver child" rule) that can protect your family, but timing and documentation matter.
6. Connect with a Medi-Cal planning specialist
Strategies can vary significantly based on individual circumstances. Elder law attorneys who specialize in Medi-Cal long-term care planning understand both the technical rules and the emotional weight of these decisions. They can explain options specific to your situation, help you understand how different approaches might work, and provide the guidance needed to make informed choices.
How Almer Can Help
At Almer, we've built a network of vetted California elder law attorneys who specialize in Medi-Cal planning and long-term care—attorneys who know the 2026 changes and take the time to explain your options clearly.
As a concierge service, we do more than make a connection. We connect you with the right attorney for your situation, then stay by your side throughout the process so you always know what's happening, what to ask, and what comes next. You focus on making the best decisions—we handle the rest.
These changes are significant, but they're manageable with the right support. There's time to plan thoughtfully, and we're here to help you get the guidance that makes sense for your family.
FAQs About 2026 Medi-Cal Changes
What is the Medi-Cal asset limit for 2026?
The California Medi-Cal asset limit for long-term care is $130,000 for individuals and $195,000 for couples where both need coverage. Your home, one car, and certain other assets are typically exempt and don't count toward this limit.
I enrolled in 2024 when there were no limits. What happens now?
You remain covered until your 2026 annual renewal. At renewal, you'll need to report your assets. If assets exceed the limit, this may affect continued coverage—which is why many families consult with an attorney before their renewal date.
How do asset transfers affect Medi-Cal eligibility?
Transfers made after January 1, 2026 may be subject to the 30-month lookback period and could affect nursing home coverage eligibility. There are specific exceptions to these rules, and the application can vary by individual circumstances. This is an area where legal guidance is particularly important
What typically happens to a home with Medi-Cal?
Your primary home usually doesn't count toward the asset limit during your lifetime. After death, California may seek estate recovery to recoup costs, but this typically only applies to assets that go through probate. Estate planning can affect how this works in practice.
How do spousal protections work?
When one spouse needs nursing home care, California provides protections for the spouse remaining at home. The Community Spouse can generally keep approximately $157,920 in assets, all their own income, and the family home. The specifics can vary based on how assets are structured and individual circumstances.
What's the difference between Medi-Cal and Medicare for long-term care?
Medicare covers short-term skilled nursing care (typically up to 100 days after a hospital stay). Medi-Cal covers long-term custodial care in nursing homes for California residents who meet the financial and medical eligibility requirements.
Disclaimer: This article provides general information about California Medi-Cal rule changes and is not legal advice. Every family's situation is unique, and the application of these rules can vary based on individual circumstances. For guidance specific to your situation, consult with a qualified elder law attorney.
Almer is a concierge service connecting California families with specialized elder law attorneys who understand Medi-Cal planning and long-term care. If you'd like to talk through how these changes affect your family, we're here to help.
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