California Medi-Cal Asset Limits and Long-Term Care Planning

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For many Central Valley families, planning for long-term care can involve difficult financial and personal decisions. The cost of skilled nursing care can be substantial, making it important to understand Medi-Cal eligibility and available planning options before long-term care is needed.

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California eliminated the Medi-Cal asset test in 2024, but asset limits were reinstated on January 1, 2026. As a result, certain Medi-Cal applicants and recipients must again meet applicable asset requirements in addition to other eligibility rules.

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If you or a loved one may need long-term skilled nursing care, understanding Medi-Cal’s asset limits, exemptions, transfer rules, and other eligibility requirements can help you evaluate your planning options and make informed decisions about long-term care.

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What Are the Medi-Cal Asset Limits in California for 2026?

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Effective January 1, 2026, California reinstated asset limits for certain non-MAGI Medi-Cal programs, including Long-Term Care Medi-Cal. Eligibility depends on the value of countable assets, although some assets may be exempt under Medi-Cal rules. The applicable asset limits are:

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• Individual Limit: A single applicant may have up to $130,000 in countable assets.

• Additional Household Members: The limit increases by $65,000 for each additional household member.

• Spousal Protection (CSRA): When one spouse requires long-term care and the other remains at home, special spousal impoverishment rules may allow the community spouse to retain additional assets. For 2026, the Community Spouse Resource Allowance (CSRA) is up to $162,660.​

 

If countable assets exceed the applicable limit, an applicant may not qualify for Medi-Cal until eligibility requirements are met. Current Medi-Cal recipients subject to the asset test must report their assets when they renew their coverage and may lose eligibility if their countable assets exceed the applicable limit.

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Medi-Cal's Look-Back Rules for Asset Transfers

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Because Medi-Cal has specific rules governing asset transfers, gifting or transferring property without understanding the potential consequences can affect eligibility for long-term care Medi-Cal. Families should carefully evaluate proposed transfers before changing ownership of real estate, financial accounts, or other assets. California has a 30-month look-back period for certain asset transfers involving long-term care Medi-Cal, although the months currently subject to review are being phased in following the reinstatement of the asset test. Certain transfers of nonexempt assets for less than fair market value during the applicable look-back period may result in a period of ineligibility for Medi-Cal payment of nursing facility services. The length of a penalty period is generally based on the uncompensated value of the transferred assets and the applicable average private-pay rate for nursing facility care. A disqualifying transfer can result in a period during which Medi-Cal will not pay for nursing facility level-of-care services.

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Advanced Planning for Families

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Families with significant or varied assets may need to consider how their estate plan interacts with Medi-Cal eligibility and long-term care planning. A living trust alone does not necessarily protect assets from Medi-Cal eligibility rules or the costs associated with long-term care.

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Depending on your circumstances, planning strategies may include appropriate transfers, gifting strategies, or certain types of irrevocable trusts. These strategies must be carefully evaluated in light of Medi-Cal eligibility rules, transfer penalties, tax considerations, and estate recovery requirements.

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Specialized Protections for Central Valley Ranches and Family Farms

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For agricultural families throughout the Central Valley, including Visalia, Tulare, Porterville, Exeter, Hanford, Kingsburg, and Dinuba, farms and ranches may represent both a family legacy and an important source of income. Medi-Cal planning for agricultural families may require careful consideration of real property, business interests, and the structure of the farming operation.

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Medi-Cal planning for farm and ranch families may involve coordinating estate planning with the ownership and structure of agricultural land, equipment, business entities, and other assets. Each family's circumstances are different, and careful planning can help address long-term care needs while considering the continued operation and succession of the family farm.

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Proactive Planning vs. Crisis Intervention

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Planning before long-term care is needed generally provides more time to evaluate Medi-Cal eligibility, estate planning, and long-term care planning options.

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• Proactive Planning: Planning in advance may provide more options for addressing asset ownership and transfers before long-term care is needed. Any strategy should account for Medi-Cal’s applicable look-back and transfer rules, as well as potential tax and estate planning consequences.

• Crisis Intervention: If a loved one is already receiving nursing home care or needs immediate long-term care, planning options may still be available. Eligibility, transfer rules, available exemptions, and the individual’s financial circumstances should be carefully evaluated before taking action.

 

Medi-Cal planning before a medical or long-term care crisis may provide more time to understand your options and make informed decisions.

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Discuss Your Medi-Cal Planning Options

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To discuss your circumstances and learn more about Medi-Cal planning options, contact Attorney Daniel K. Marvin at the Law Offices of Sherwood & Marvin, APC, to schedule a Medi-Cal planning consultation.