Medi-Cal rules will tighten again in 2026. Here’s how Californians can protect their assets, qualify for long-term care, and prepare before the current window closes.
What counts as an asset under Medi-Cal?
Medi-Cal looks at everything you own when deciding if you qualify. But not all assets are treated the same.
There are two main categories:
- Exempt assets (ignored by Medi-Cal):
Your home, car, furniture, clothing, burial plots, and retirement accounts that pay you regular income. - Non-exempt assets (counted toward the limit):
Cash, savings, stocks, bonds, a second home, and life insurance with cash value.
Before 2023, if you had more than $2,000 in non-exempt assets, you didn’t qualify for Medi-Cal long-term care.
What changed in 2023 and 2024?
California started updating Medi-Cal’s financial rules:
- Mid-2023: The asset limit increased to $130,000 for individuals.
- 2024: The asset limit was completely removed, meaning you could have any amount of assets and still qualify.
This unlimited rule continues through 2025, but it ends in 2026.
What will happen in 2026?
Starting January 1, 2026, the asset test returns:
- Individuals can have up to $130,000.
- Married couples applying together can have $195,000.
That means the freedom people have now will no longer apply. Anyone applying after 2025 will once again have to meet those limits.
What should families do before then?
During 2025, families can:
- Move assets into protected accounts or trusts
- Gift property to loved ones without penalties
- Apply for Medi-Cal under the current, more flexible rules
- Review estate plans to make sure they reflect the upcoming changes
By acting before the new year, you can save thousands of dollars and months of waiting later.
What mistakes should people avoid?
- Waiting too long. Once 2026 arrives, these options disappear.
- Giving away assets without a plan. Poorly timed transfers can cause issues under the new rules.
- Skipping professional help. Medi-Cal planning is complex and small mistakes can be costly.
Getting expert advice now helps you avoid those problems later.
Why is planning early so important?
Medi-Cal is one of the most powerful tools for covering long-term care costs, but it’s also one of the most detailed programs to navigate.
Planning before 2026 lets you take advantage of the current rules while they still work in your favor.
How can Keyes Law Group help?
Our team helps California families protect assets, qualify for Medi-Cal, and prepare for future care needs.
We guide clients step by step, so you can make confident decisions and avoid surprises when the rules change.
2025 is your window to plan smartly, save more, and stay protected. Schedule a meeting today to make sure you don’t miss the deadline.
