California is set to change eligibility rules for the Medi-Cal program starting July 1, 2027. State officials announced an 84% reduction in allowable assets for certain enrollees, specifically seniors, individuals with disabilities, and those requiring long-term nursing care. The individual asset limit will drop from $130,000 to $21,000. Married couples will see their limit decrease from $195,000 to $31,000.
This shift marks a significant change from the policies enacted in 2022. State authorities implemented the adjustments as part of a budget plan to address rising Medi-Cal costs and impacts from federal funding changes. The new rules apply to participants not covered under federal modified adjusted gross income standards, such as those relying on Medicare Savings Programs or specific long-term care services.
Assets counted under these new requirements include cash, secondary homes, extra vehicles, and various investments. Some exemptions remain in place, including a primary residence and a single vehicle. Experts note that retirement funds such as 401(k) accounts may remain exempt if they provide regular payments. The state may still attempt to recover costs from estates after a beneficiary dies, though legal structures like living trusts can sometimes provide protections.
Beneficiaries will not face immediate re-evaluation on July 1, 2027. Instead, officials will assess assets during the standard annual renewal process. If you currently hold assets exceeding these new thresholds, you may need to plan for a spend-down or transfer process. Because gifting or selling assets below market value can cause eligibility delays, legal and financial experts recommend reviewing personal plans with a professional.
These changes come amidst broader concerns regarding the state healthcare system. Research from the California Health Care Foundation suggests that these and other policy shifts could contribute to access challenges and longer wait times for medical services across the state. Families currently receiving benefits should track their upcoming renewal dates to ensure they remain in compliance with the updated standards.