Does the Government Pay for Nursing Home Care?

Many California families ask whether government programs will cover the cost of long-term nursing home care. The answer depends on the program.

Medicare provides limited coverage for short-term rehabilitation in a skilled nursing facility—typically up to 100 days under specific conditions. However, Medicare does NOT cover long-term custodial care, which is what most nursing home residents ultimately need.

For long-term care, the primary government program is Medicaid, known in California as Medi-Cal.

Medi-Cal is a joint federal and state program and is the largest payer of nursing home care in the United States. If you qualify, Medi-Cal can cover 100% of nursing home costs at an approved skilled nursing facility.

Most nursing homes in California accept Medi-Cal, but not all do—so it’s important to confirm this when evaluating facilities.

How To Qualify for Medi-Cal to Pay for a Nursing Home (2026)

To qualify for Medi-Cal long-term care benefits in 2026, California residents must meet specific financial and medical criteria.

As of January 1, 2026, California has reinstated asset limits for Medi-Cal eligibility:

• $130,000 for an individual
• $195,000 for a married couple
• Additional allowances for larger households

In addition, California now applies a 30-month look-back period on asset transfers. This means gifts or transfers made within this window may result in a penalty period before benefits begin.

Even if you have been told that you do not qualify, that is often not the final answer.

With proper Medi-Cal Planning, many individuals can legally restructure assets and still qualify for benefits while preserving wealth.

How to Protect Your Assets From Nursing Home Costs

The cost of nursing home care in California can be devastating financially.

• Average costs often range from $9,000 to $15,000+ per month
• In some cases, costs can exceed $20,000 per month

Without a plan, families are often forced to:

• Spend down life savings
• Sell the family home
• Liquidate investments
• Rely on children for financial support

Medi-Cal Planning offers legal strategies to:

• Preserve your home
• Protect savings and investments
• Qualify for benefits faster
• Avoid unnecessary financial loss

Planning early—or even during a crisis—can make a significant difference in the outcome.

How to Avoid the Medi-Cal Estate Recovery Program

Many families are unaware that after a Medi-Cal recipient passes away, the State may attempt to recover the cost of care through the Medi-Cal Estate Recovery Program.

This can place the family home and other assets at risk.

However, with proper legal planning, it is often possible to:

• Minimize or avoid estate recovery
• Preserve assets for heirs
• Structure ownership to protect property

Medi-Cal Planning is the only legal method to proactively address estate recovery risks.

How to Protect Yourself and Your Family With Medi-Cal Planning

Without proper guidance, families often make costly decisions, such as:

• Paying privately until funds are exhausted
• Taking out reverse mortgages
• Cashing out life insurance policies
• Transferring assets incorrectly (triggering penalties)

With the right legal strategy, you can:

• Qualify for Medi-Cal sooner
• Protect your home and assets
• Reduce financial stress on your family
• Ensure long-term care is covered

At Elder Law Services of California, our attorneys have helped families for decades navigate these complex rules and protect what matters most.

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