California’s Medi-Cal asset limits are back in effect as of January 1, 2026. For Non-MAGI Medi-Cal, an individual can hold up to $130,000 in countable resources, with an additional $65,000 allowed for each other household member, up to ten people.1California Legislative Information. California Welfare and Institutions Code 14005.62 A married couple applying together can hold $195,000. Your home, one vehicle, and household belongings generally don’t count toward those figures, which is why the practical asset picture is usually more forgiving than the numbers alone suggest.
Who the Asset Test Applies To
The asset limit only applies to Non-MAGI Medi-Cal, which covers people whose eligibility isn’t determined by Modified Adjusted Gross Income. That includes individuals aged 65 or older, people who are blind, and those with a qualifying disability.2Department of Health Care Services. Non-MAGI Medi-Cal (PUB 10) People receiving long-term care in nursing facilities or through home- and community-based waiver programs use these rules as well. Many Californians first run into the asset test when they turn 65 and Medicare enrollment shifts them into a Non-MAGI category.
If you qualify for Medi-Cal on income alone under MAGI rules, the asset test doesn’t apply to you. It’s specifically the Non-MAGI pathways where resources are counted.
What Counts Toward the Limit
The state divides everything you own into countable and exempt. Countable assets are the ones measured against the $130,000 threshold:
- Cash, checking and savings accounts, and certificates of deposit
- Stocks, bonds, and brokerage account balances
- Real estate other than your primary home, including vacation and rental properties
- Any vehicle beyond the one you primarily use
Exempt assets sit outside the count entirely.3Department of Health Care Services. Asset Limit Frequently Asked Questions The most important ones:
- Your primary residence, subject to the home equity cap described below
- One vehicle
- Household furnishings, clothing, and personal belongings
- Certain retirement accounts, depending on whether the funds are in payout status; treatment of IRAs and 401(k)s is genuinely complicated and worth reviewing with an elder law attorney if you hold significant retirement savings
Burial Funds
You and your spouse can each set aside up to $1,500 designated specifically for burial expenses without it counting.4Social Security Administration. Spotlight on Burial Funds Interest earned on that fund is also excluded as long as it stays in the account. The money has to be clearly identified as a burial fund, either through the account title or a signed statement. Irrevocable prepaid burial contracts with a funeral home are generally fully exempt regardless of value.
Home Equity Cap for Long-Term Care
Your primary residence is exempt from the asset count, but federal law caps how much equity you can hold in it and still qualify for Medicaid-funded long-term care. For 2026, the federal floor is $752,000 and the ceiling is $1,130,000, with states choosing where within that range to set their own limit.5Medicaid.gov. 2026 SSI, Spousal Impoverishment, and Medicare Savings Program Resource Standards If your equity exceeds that limit and you need nursing facility care, the home exemption no longer applies. The cap generally doesn’t reach you if your spouse or a dependent relative continues living in the home.
Spousal Protections When One Partner Needs Long-Term Care
Federal spousal impoverishment rules prevent the state from forcing a couple to spend down everything when only one spouse enters a nursing facility. The spouse remaining at home, called the community spouse, is entitled to keep a share of the couple’s combined countable assets under the Community Spouse Resource Allowance. For 2026, the maximum CSRA is $162,660.6Department of Health Care Services. All County Welfare Directors Letter 26-02
The community spouse can also draw a Minimum Monthly Maintenance Needs Allowance from the institutionalized spouse’s income when needed. For 2026, the federal minimum is $2,643.75 per month.5Medicaid.gov. 2026 SSI, Spousal Impoverishment, and Medicare Savings Program Resource Standards These protections apply specifically when one spouse is receiving institutional or waiver-level care.
The 30-Month Look-Back on Transfers
If you apply for Medi-Cal coverage of long-term care, the state reviews whether you gave away or sold assets for less than fair market value before applying. California’s look-back period is 30 months, shorter than the 60-month federal standard most other states use.7Department of Health Care Services. All County Welfare Directors Letter 23-28 A transfer during that window without fair value in return triggers a penalty period during which you’re ineligible for long-term care coverage.
Because the state stopped reviewing transfers on January 1, 2024, the effective look-back window has been shrinking. By early 2026, only transfers made before January 2024 are still reviewable, and by July 2026 the pre-2024 window fully expires.7Department of Health Care Services. All County Welfare Directors Letter 23-28
Several transfers are exempt from penalties no matter when they happen. You can transfer your home to your spouse, to a child under 21, or to a child of any age who is blind or permanently disabled without triggering a penalty. A sibling who already holds an equity interest in the home and has lived there for at least a year before your nursing facility admission is also protected. A separate caregiver child exception allows transfer of your home to an adult child who lived with you and provided hands-on care for at least two years immediately before your admission, if that care demonstrably delayed institutional placement.
Estate Recovery After Death
Qualifying for Medi-Cal during your lifetime is one question. What the state can recover from your estate after you die is another, and people often overlook it. California’s Medi-Cal Estate Recovery Program applies to members who received benefits on or after age 55, and recovery is limited to the cost of nursing facility services, home- and community-based services, and related hospital and prescription drug services received while an inpatient or on a waiver.8Department of Health Care Services. Medi-Cal Estate Recovery Brochure
Recovery reaches only assets in the deceased member’s probate estate. Property that passes by survivorship, trust, or transfer-on-death designation avoids the program entirely. The state also will not pursue a claim if the deceased is survived by a spouse, a child under 21, or a child of any age who is blind or disabled.8Department of Health Care Services. Medi-Cal Estate Recovery Brochure A hardship waiver is available when recovery would cause substantial financial hardship to surviving family.
Renewals and Documentation
With the asset test back in effect, Medi-Cal beneficiaries have to document resources again at annual renewal. Renewal packets ask for bank statements, property records, vehicle registrations, and documentation of any other countable resources.9California Department of Health Care Services. MC 355 – Medi-Cal Request for Information County eligibility workers generally have 45 days to process an application, extended to 90 days when the determination depends on establishing blindness or disability. Missing the deadline to return requested documentation can end your coverage, so treat any information request as time-sensitive and keep copies of everything you submit.
Challenging a Denial or Termination
If the state denies your application or terminates your coverage over the asset limit, you have 90 days from the date of the notice to request a state hearing.10California Department of Social Services. State Hearings The right applies whether the dispute is about how the county valued an asset, whether something should have been treated as exempt, or any other eligibility determination.11Department of Health Care Services. Medi-Cal Fair Hearing
If you already have Medi-Cal and want benefits to continue during the appeal, request the hearing within 10 days of the date the notice of action was mailed, before the effective date of the change. Meeting that window preserves your coverage while the hearing is pending. You can represent yourself or bring an attorney, a friend, or another spokesperson. Free legal help is available through local legal aid organizations, and these cases often turn on documentation details a knowledgeable advocate can help pull together.