California Medi-cal eligibility in 2026 is already published but most of the website data are very complex to understand.
That’s why I research and put all of my efforts into creating this simple guide especially for seniors age 65+ who need long-term care.
Page Contents
- 1 What Is Medi-Cal?
- 2 The 3 Medi-Cal Programs for Seniors (65+)
- 3 Major 2026 Change: Asset Limits Return
- 4 California Medi-Cal Long-Term Care Eligibility
- 5 Important Notes to Remember
- 6 Spousal Protections (Critical for Married Couples)
- 7 What Counts as Income?
- 8 What Assets Count in 2026?
- 9 Home Rules Under Medi-Cal
- 10 Medi-Cal Estate Recovery (Often Overlooked)
- 11 The Medicaid Look-Back Rule Explained
- 12 What If You Are Over the Limits?
- 13 Key Medi-Cal Programs for Seniors
- 14 How to Apply for Medi-Cal
- 15 Medi-Cal Eligibility 2026: FAQs Californians Are Asking
- 15.1 FAQ 1: How much can I have in assets and still qualify for Medi-Cal in 2026?
- 15.2 FAQ 2: Will I lose Medi-Cal if I own a home or a car?
- 15.3 FAQ 3: What is the Medi-Cal income limit for a single adult in 2026?
- 15.4 FAQ 4: Can I still qualify for Medi-Cal if my income is over the limit?
- 15.5 FAQ 5: Do retirement accounts like IRAs or 401(k)s count as Medi-Cal assets?
- 15.6 FAQ 6: When do I have to report my income and assets to Medi-Cal?
- 15.7 FAQ 7: Is Medi-Cal enrollment freezing for undocumented adults in 2026?
- 15.8 FAQ 8: If I already have Medi-Cal, could I lose my coverage in 2026?
- 16 Final Thoughts
What Is Medi-Cal?
Medi-Cal is California’s Medicaid program. It provides health coverage for low-income residents, including long-term care (LTC) for seniors.
Long-term care includes:
- Nursing home care
- Assisted living services
- In-home care and support services
Medi-Cal is jointly funded by the state and federal government and administered by the California Department of Health Care Services.
The 3 Medi-Cal Programs for Seniors (65+)
First of all let’s start with the basic things. There are 3 Medi-Cal programs for seniors (65+). These are:
1) Nursing Home / Institutional Medicaid
- Who it’s for: Seniors who need full-time nursing home care
- Guaranteed: Yes (no waitlist)
- Where care is provided: Medicaid-certified nursing homes
2) HCBS Waivers (Home & Community-Based Services)
- Who it’s for: Seniors who need nursing-home-level care but want to stay at home or in assisted living
- Guaranteed: No (waitlists may apply)
- Where care is provided: At home, adult day care, or assisted living
3) Regular Medi-Cal (Aged, Blind & Disabled – ABD)
- Who it’s for: Seniors needing help with daily activities
- Guaranteed: Yes
- Note: Not full LTC Medicaid, but includes services like personal care and adult day care
Major 2026 Change: Asset Limits Return
One of the biggest Medi-Cal changes in 2026 is the return of asset limits.
- Through December 31, 2025:
👉 No asset limit for most senior Medi-Cal programs - Starting January 1, 2026:
👉 Asset limits are reinstated for long-term care and ABD Medi-Cal
This means bank accounts, investments, and property will once again matter.
California Medi-Cal Long-Term Care Eligibility
(April 1, 2025 – March 31, 2026)
🔑 Key Things to Know First
- Asset limits return on January 1, 2026
- Income limits depend on the type of Medi-Cal
- Most nursing home residents must pay almost all their income to the facility
- Medical need (level of care) is required for all programs
1. Nursing Home Medi-Cal (Institutional Care)
| Situation | Monthly Income Limit | Asset Limit (Starting 1/1/26) | Care Needed |
| Single | No limit* | $130,000 | Nursing home |
| Married – both applying | No limit* | $195,000 | Nursing home |
| Married – one applying | No limit* | $130,000 (applicant)$162,660 (spouse at home) | Nursing home |
What this means:
There is no income cap, but nearly all income goes to the nursing home except:
- $35/month personal allowance ($62 if on SSI)
- Medicare premiums
- Possible allowance for a spouse living at home
2. Home & Community-Based Services (Waivers)
| Situation | Monthly Income Limit | Asset Limit (Starting 1/1/26) | Care Needed |
| Single | $1,801 | $130,000 | Nursing-home level care (at home) |
| Married – both applying | $2,433 | $195,000 | Nursing-home level care |
| Married – one applying | $1,801 (applicant only) | $130,000 (applicant)$162,660 (spouse at home) | Nursing-home level care |
What this means:
You must need nursing-home-level care, but services are provided at home or in the community instead.
3. Regular Medi-Cal (Aged, Blind & Disabled – ABD)
| Situation | Monthly Income Limit | Asset Limit (Starting 1/1/26) | Care Needed |
| Single | $1,801 | $130,000 | Help with daily activities |
| Married – both applying | $2,433 | $195,000 | Help with daily activities |
| Married – one applying | $2,401** | $195,000 | Help with daily activities |
What this means:
This program is for people who need help with daily tasks (bathing, dressing, eating), not full nursing home care.
Important Notes to Remember
- Assets = cash, savings, investments (home and car are often exempt)
- Income = Social Security, pensions, etc.
- SSI recipients are automatically eligible for Regular Medi-Cal, even though SSI still has its own asset limits
- Being over a limit does NOT mean permanent disqualification—there are legal planning options
Spousal Protections (Critical for Married Couples)
Monthly Maintenance Needs Allowance (MMNA)
To prevent spousal impoverishment, California allows income to be transferred to the non-applicant spouse.
- 2026 MMNA: $4,066.50 per month
- Applies to:
- Nursing Home Medi-Cal
- HCBS Waivers
- Does not apply to Regular Medi-Cal
If the non-applicant spouse earns less than $4,066.50/month, income may be transferred from the applicant spouse to reach that amount.
What Counts as Income?
Countable Income Includes:
- Social Security
- Pensions
- Employment wages
- IRA / retirement withdrawals
- Dividends and interest
Not Counted in California:
- VA Aid & Attendance (above base pension)
- Holocaust restitution payments
What Assets Count in 2026?
Countable Assets
- Cash and bank accounts
- Stocks, bonds, mutual funds
- Cryptocurrency
- Real estate other than primary home
Exempt (Non-Countable) Assets
- Primary residence (with conditions)
- One vehicle
- Personal belongings
- Household furnishings
- Irrevocable burial trusts
- Retirement accounts if paying out required distributions
A non-applicant spouse’s retirement accounts are always exempt.
Home Rules Under Medi-Cal
A home is automatically exempt if:
- The applicant lives in it or
- A spouse lives there or
- A child under 21 or a disabled child lives there
California is unique because it has no home equity limit.
⚠️ However, the home is not protected from estate recovery unless planning steps are taken.
Medi-Cal Estate Recovery (Often Overlooked)
After a Medi-Cal recipient passes away, the state may seek repayment for care costs from:
- The home
- Remaining assets in the estate
Even if assets were exempt during life, they can still be recovered after death without proper planning.
The Medicaid Look-Back Rule Explained
Transfers Before 2024
- Look-back period is phasing out
- By July 2026, transfers before 2024 will no longer be penalized
Transfers During 2024–2025
- No penalties
- Safe period for gifts and planning
Transfers Starting January 1, 2026
- Look-back rule returns for Nursing Home Medi-Cal
- Gifts or selling assets below market value may cause:
- Up to 30 months of ineligibility
- HCBS Waivers and Regular Medi-Cal are not subject to the look-back rule
Small gifts are allowed if total assets remain under the asset limit.
What If You Are Over the Limits?
- Pay excess income toward care
- 2025 allowances:
- $600 (single)
- $934 (married)
Option 2: Asset Spend-Down
Allowed uses include:
- Home repairs or modifications
- Vehicle modifications
- Prepaid burial plans
- Paying off debt
Option 3: Medicaid Planning
Professionals can:
- Protect assets legally
- Maximize spousal income
- Reduce share of cost
- Protect the home from estate recovery
Key Medi-Cal Programs for Seniors
- IHSS – In-home care (family can be paid)
- Assisted Living Waiver (ALW) – Assisted living support
- CBAS – Adult day health care
- MSSP Waiver – In-home support & nursing home transition
- HCBA Waiver – For medically fragile seniors
- PACE – Combines Medicare & Medi-Cal
- CalAIM (ECM & Community Supports) – Care coordination
- Money Follows the Person (CCT) – Transition from nursing home to community
How to Apply for Medi-Cal
You can apply:
- Online through Covered California
- By phone: 1-800-300-1506
- Through your county social services office
HCBS applicants must:
- Apply for ABD Medi-Cal
- Complete a functional assessment
Medi-Cal Eligibility 2026: FAQs Californians Are Asking
FAQ 1: How much can I have in assets and still qualify for Medi-Cal in 2026?
Beginning January 1, 2026, asset limits return for certain Medi-Cal programs. An individual can have up to $130,000 in countable assets, while couples can have $195,000 combined. These limits apply mainly to seniors, people with disabilities, and those needing long-term care, not standard MAGI Medi-Cal.
FAQ 2: Will I lose Medi-Cal if I own a home or a car?
No. Your primary home is fully exempt, regardless of value, and one vehicle is also exempt. Second homes, vacation properties, or extra vehicles do count toward the asset limit. If you temporarily live elsewhere but intend to return home, your home can still remain exempt.
FAQ 3: What is the Medi-Cal income limit for a single adult in 2026?
For most adults, the income limit remains 138% of the Federal Poverty Level, which is about $21,600 per year (roughly $1,800 per month). Income limits are unchanged in 2026, even though asset limits are coming back.
FAQ 4: Can I still qualify for Medi-Cal if my income is over the limit?
Yes. If your income is slightly above the limit, you may qualify through the medically needy (spend-down) program. Certain medical expenses—such as doctor bills, prescriptions, or insurance premiums—can reduce your countable income and help you become eligible.
FAQ 5: Do retirement accounts like IRAs or 401(k)s count as Medi-Cal assets?
Retirement accounts do not count as assets if they are in payout status, meaning you receive regular distributions or required minimum distributions (RMDs). If the account is not paying out, it may be counted. Treatment can vary, so verification with your county is important.
FAQ 6: When do I have to report my income and assets to Medi-Cal?
You must report changes within 10 days of any income or asset change. Assets are formally reviewed at your annual renewal, which occurs once per year based on your enrollment month. Failure to report changes can affect eligibility, but a 90-day grace period is available to fix issues.
FAQ 7: Is Medi-Cal enrollment freezing for undocumented adults in 2026?
Yes. Starting January 1, 2026, California will freeze new full-scope Medi-Cal enrollments for undocumented adults age 19 and older. People already enrolled before the freeze can keep their coverage as long as they complete renewals on time.
FAQ 8: If I already have Medi-Cal, could I lose my coverage in 2026?
Most current members will not lose coverage automatically. Asset limits are checked at your renewal after January 1, 2026. If you are over the limit, you have 90 days to reduce assets or submit documentation while benefits remain active.
Final Thoughts
California Medicaid eligibility in 2026 is more complex than in recent years due to:
- The return of asset limits
- The return of the look-back rule
- Continued estate recovery enforcement
Planning before applying can mean the difference between:
- Approval vs. denial
- Protecting a spouse vs. impoverishment
- Leaving a home to family vs. losing it to recovery
