Major Medi-Cal changes are coming January 1, 2026 — and they could dramatically affect your eligibility for long-term care coverage.
Here’s what you need to know to protect your assets and maintain benefits under the new rules.
Key Changes to Medi-Cal Beginning January 1, 2026
The California Department of Health Care Services (DHCS) has announced that asset limits will be reinstated for non-MAGI Medi-Cal recipients.
This reverses the temporary removal of asset testing that began in 2022.
1. Reinstated Asset Limits
- $130,000 for an individual
- $195,000 for a couple
- + $65,000 for each additional household member (up to 10)
This means that bank accounts, investments, and certain property will once again count toward eligibility. Gifts or transfers made after January 1, 2026 may trigger a three-year look-back period that delays or disqualifies Medi-Cal eligibility.
2. Eligibility for Undocumented Adults
- New enrollments will be frozen for undocumented adults age 19 and older.
- Current enrollees may keep coverage if they meet renewal and income requirements.
3. Loss of Dental Benefits
- Dental coverage will end for undocumented adults age 19 and older.
- Pregnant women and children under 19 remain eligible for Medi-Cal dental benefits.
4. Other Adjustments
- Increased premiums for some Medi-Cal recipients
- Updates to the Medi-Cal Fraud Unit and Special Deposit Fund
These changes are designed to reduce budget pressures and “ensure long-term sustainability of the Medi-Cal program,” according to DHCS.
Why Acting Before December 31, 2025 Is Critical
If you transfer or gift assets before December 31, 2025, those transactions will not be counted under the upcoming three-year look-back rule.
After the deadline, however, the state may review your past financial transfers when determining eligibility.
That’s why advance planning is essential — especially for families who:
- Expect to need long-term care Medi-Cal in the next few years
- Hold savings, property, or investment accounts above the new limits
- Are helping aging parents prepare for Medi-Cal eligibility
How Elder Law Services of California Can Help
Our attorneys have helped thousands of Californians protect assets, qualify for long-term care benefits, and avoid costly Medi-Cal mistakes.
We’ll help you:
- Review your current asset structure
- Create a Medi-Cal eligibility plan before the 2026 reinstatement
- Navigate complex rules for gifting, trusts, and transfers
- File all necessary applications and renewals correctly
📞 Call (800) 403-6078 today or Schedule your free consultation to protect your eligibility before December 31, 2025.
Frequently Asked Questions (FAQs)
Q: What are the new Medi-Cal asset limits for 2026?
A: As of January 1, 2026, individuals may have up to $130,000 in countable assets; couples up to $195,000; and each additional household member adds $65,000 (up to 10 members).
Q: Do these limits apply to everyone on Medi-Cal?
A: No. The limits apply to non-MAGI Medi-Cal programs (such as Long-Term Care Medi-Cal). Income-based MAGI programs are not affected.
Q: What happens if I transfer assets after January 1, 2026?
A: Transfers made after this date may trigger a three-year look-back period, which can delay or disqualify your Medi-Cal eligibility for long-term care.
Q: How can I protect my home and savings from Medi-Cal estate recovery?
A: Legal planning options such as irrevocable trusts, caregiver agreements, and timely gifting strategies can help safeguard assets before the deadline.
Consult a qualified elder law attorney to determine the best approach for your situation.
Sources
- California Department of Health Care Services (DHCS)
- California Advocates for Nursing Home Reform (CANHR)
✅ Take Action Now — Protect What Matters Most
The Medi-Cal 2026 asset limit rule will take effect soon, and every month that passes limits your planning options.
Don’t wait until the deadline — contact Elder Law Services of California today for a free, confidential consultation.
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