Big changes are coming to Medi-Cal in 2026. Here’s what California families need to know about this year’s unique chance to qualify for long-term care coverage and protect their assets.
What’s happening with Medi-Cal in 2025?
Right now, California has a short-term rule that makes it much easier to qualify for Medi-Cal Long-Term Care, the program that helps pay for nursing home and ongoing care costs.
Until the end of 2025, there is no asset limit. That means you can own a home, savings, or other property and still qualify for Medi-Cal benefits.
This rule has opened the door for many people who were previously denied coverage, but it’s not going to last. The state will tighten the rules again starting January 1, 2026.
Why is this such a big deal?
Before 2023, Medi-Cal applicants could have only $2,000 in non-exempt assets.
That meant many people had to spend down most of their savings before qualifying, which was financially devastating for families.
Then the limits began to change:
- Before 2023: $2,000 limit
- Mid-2023: Raised to $130,000
- January 1, 2024: No limit at all
For the first time, Medi-Cal eligibility focused mainly on income, not what someone owned. This gave Californians a chance to keep their assets and still get the care they need.
What’s changing in 2026?
Starting January 1, 2026, the unlimited asset rule ends.
The new limits will be:
- $130,000 for one person
- $195,000 for a couple (if both apply for Medi-Cal)
That means the freedom people have in 2025 will be gone, and the window to take advantage of this opportunity will close.
Why is the state making this change?
When California lifted the asset limit, far more people signed up than expected. That increased the state’s Medi-Cal costs dramatically.
Because Medi-Cal is funded by both the federal and state governments, California pays part of the cost and gets reimbursed for the rest. The surge in new enrollees made the program more expensive than the state could maintain long-term.
To balance things out, the state decided to bring back the asset test in 2026. It’s a compromise that still gives people more flexibility than before 2023, but not as much as in 2024–2025.
What does “share of cost” mean?
Even with Medi-Cal coverage, some people must pay a portion of their monthly care costs. This is called a share of cost, it’s similar to a copay, but based on income.
Here’s how it works:
- You keep a small amount of your income each month (for personal expenses).
- Everything above that goes toward your care costs.
- Once you’ve paid your share, Medi-Cal covers the rest.
For example, if you make $4,000 per month and are allowed to keep $1,732, you would pay about $2,268 toward your care, and Medi-Cal would pay the remaining costs.
This rule stays the same even after 2026.
What should families do before the rules change?
The next few months are an important time for planning.
Before the end of 2025, families can:
- Move or gift assets without penalty
- Adjust financial plans to protect savings
- Review or update estate and trust documents
- Apply for Medi-Cal while the unlimited rule still applies
Taking action before 2026 can help you qualify more easily and protect more of what you’ve worked for.
What’s the bottom line?
This year’s Medi-Cal rules give Californians a rare chance to plan ahead and protect their assets, but the opportunity ends soon.
If you or someone you love may need long-term care, now is the time to learn how these temporary rules can help.
Don’t wait until it’s too late. The Medi-Cal rules change in just weeks, and this opportunity won’t come back. Schedule a consultation with our team and let us guide you and and help you make smart decisions to protect your assets and secure care for your loved ones.
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