If you own a home, have savings, and are thinking about your future care needs, or you have aging parents who may need long-term care, there’s a major change coming in California Medi-Cal eligibility rules that you need to know about.
Starting January 1, 2026, California will reinstate the Medi-Cal asset test for certain programs, including long-term care. This means your ability (or your parents’ ability) to qualify for Medi-Cal will once again depend on how much you own.
This is especially important if you:
Want to protect your home, savings, and investments
Are planning for your own long-term care needs
Have aging parents who might need assistance paying for nursing home care or in-home support.
What’s Changing in 2026
Between 2024 and the end of 2025, California temporarily removed all asset limits for Medi-Cal eligibility. That meant families didn’t have to worry about how much they owned when applying for certain Medi-Cal programs.
But beginning January 1, 2026, those limits will come back:
Individuals: Can have up to $130,000 in countable assets
Each additional household member: Add $65,000 per person up to 10 people total.
Married couples: In some cases, the “community spouse” can keep up to $157,920 under special rules
Elderly parents or relatives: If they rely on Medi-Cal for long-term care, they’ll also need to meet these limits
This is a big shift that could make qualifying for Medi-Cal benefits harder, especially for families who own property, have savings, or hold investments.
Which Assets Count — and Which Don’t
Understanding the difference between “countable” and “exempt” assets is key to making smart planning decisions.
Assets That Do NOT Count (Exempt Assets)
Your primary residence (in most cases)
One vehicle
Household items and personal belongings
Jewelry within reasonable limits
Retirement accounts if you’re taking regular distributions
Prepaid burial funds
Assets That DO Count (Countable Assets)
Cash, checking, and savings accounts
Investments like stocks, bonds, and mutual funds
Second homes, vacation properties, and rental real estate
Certain business interests and investment properties
If you or your parents own multiple properties, have significant savings, or maintain investment accounts, the reinstated asset limits may affect Medi-Cal eligibility unless you plan ahead.
Why This Matters for Families with Aging Parents
For many California families, the biggest impact will be on elderly parents.
Long-term care, whether at home, in assisted living, or in a nursing facility, is extremely expensive, often costing $10,000 to $12,000 per month in California. Without Medi-Cal, these costs are often paid out-of-pocket, which can quickly drain a lifetime of savings.
Starting in 2026, if your parents have assets above the new Medi-Cal limits, they may:
Be denied coverage until their assets are spent down
Be forced to use their retirement savings or sell property to qualify
Leave less for their heirs than they intended
If you are nearing retirement age or have elderly parents, now is the time to review any estate plans and ensure your assets, and theirs, are structured in a way that protects eligibility and preserves family wealth.
Why Planning Ahead Matters
Because the rules don’t take effect until January 1, 2026, there’s still time to plan, but the window is closing.
Proper planning can help you:
Protect your home and other exempt assets
Structure your savings and investments to stay within the limits
Use trusts and other estate planning tools to legally shield assets
Ensure you or your parents remain eligible for Medi-Cal if needed
Avoid the stress and financial strain that comes from last-minute decisions (crisis planning
Avoid a potential conservatorship
By working with an experienced estate planning attorney, you can create a strategy now that keeps more control in your family’s hands, instead of leaving critical decisions up to the state of California.
Whether you’re planning for your own care or helping your parents, the sooner you start, the more options you’ll have to protect your assets, preserve your eligibility, and secure your family’s future.
If you or family member need help protecting their assets from long-term care expenses through a carefully crafted estate plan, please reach out to our Intake Department at 760-448-2220 or submit an inquiry on our “Contact Us” page. We are here to help!! We have offices in San Diego (Carlsbad) and Orange Counties (Laguna Niguel), but we can assist families throughout California as well.
.png "When a Beneficiary Predeceases You: What Really Happens and How to Plan for It")
