What the 2027 Medi-Cal Asset Limit Change Means for LA Families

• Medi-Cal asset limits are scheduled to decrease on July 1, 2027, from $130,000 to $21,000 for individuals and from $195,000 to $31,000 for couples.
• The changes mainly affect seniors, people with disabilities, and those receiving long-term care. Primary homes and one vehicle are generally excluded.
• Families should review their assets and plan ahead. Consult an elder law attorney before transferring money or property, as this could affect Medi-Cal eligibility.

What Is Changing With the Medi-Cal Asset Limit?

California plans to lower the amount of countable assets some Medi-Cal members and applicants can own beginning July 1, 2027.

An asset limit determines how much someone can have in savings, property, and other financial resources while qualifying for specific Medi-Cal programs. It is separate from the program’s income requirements.

California’s rules have changed several times in recent years.

Before July 2022, the individual asset limit was just $2,000. California raised it to $130,000 in July 2022, eliminated the asset test in January 2024, and reinstated it on January 1, 2026, at the higher 2022 limits.

Another reduction is now scheduled for July 2027.

According to the California Department of Health Care Services (DHCS), the following limits will apply if the change takes effect as planned.

The limits cover up to 10 qualifying household members, although not everyone living in a home necessarily counts. Some married couples and registered domestic partners may also qualify for higher limits under special protections.

The July 1, 2027 implementation date remains subject to final DHCS policy and system readiness. Families should monitor official updates before making financial decisions.

Who Will the Medi-Cal Asset Limit Change Affect?

The new limits primarily affect people whose Medi-Cal eligibility depends on both income and financial resources.

According to DHCS guidance, this may include people who:

• Are age 65 or older
• Have physical, developmental, or mental disabilities
• Receive nursing home or qualifying long-term care services
• Qualify through certain programs that use an asset test

Most children, pregnant individuals, and working-age adults covered under income-based Medi-Cal rules will not be affected. These groups typically qualify through Modified Adjusted Gross Income, or MAGI, rules, which don’t use the same asset test.

However, eligibility depends on the specific program, not age alone. Families should contact their county Medi-Cal office to confirm which rules apply to their loved one.

What Counts as an Asset for Medi-Cal?

Medi-Cal considers certain financial resources when determining eligibility, but not everything a person owns counts toward the limit.

Under DHCS asset rules, countable assets generally include:

• Cash and money in checking or savings accounts
• Stocks, bonds, and other investments
• Additional vehicles beyond the primary vehicle
• Second homes, vacation properties, and other real estate

Assets that generally do not count include:

• A primary residence
• One vehicle
• Household furniture, clothing, and personal belongings
• Certain retirement funds, including those providing regular payments

Retirement accounts and jointly owned property may require additional review, so families should confirm how specific assets are classified.

Does a Parent’s Home Count?

A primary home is generally excluded from the Medi-Cal asset limit.

Special protections may also apply when someone enters a nursing home but intends to return home, or when a spouse, partner, or dependent relative continues living there.

Additional properties may count toward the limit.

It is also important to distinguish Medi-Cal asset eligibility from estate recovery, which involves potential recovery of certain benefits after a member’s death.

Before selling a home or changing property ownership, speak with a qualified California elder law attorney.

Why Families Shouldn’t Rush to Transfer Money or Property

Giving money or property to family members may seem like a quick way to meet Medi-Cal’s lower limits, but certain transfers can affect future nursing home coverage.

California uses a 30-month look-back framework to review certain asset transfers when someone applies for qualifying long-term care coverage.

If an individual gives away money or property for less than its fair value, Medi-Cal may impose a penalty that delays coverage for nursing home services.

Under DHCS transfer guidance, transfers made before January 1, 2026, are excluded under the reinstated rules. Transfers made on or after that date may be subject to penalties. The full review period is being phased in.

Not every transfer creates a problem. Certain transfers to spouses or blind or disabled children may be permitted, while selling an asset for its fair market value is treated differently from giving it away.

What Families Should Do Instead

Start by reviewing countable assets and discussing future care needs before changing ownership or transferring money.

A California elder law attorney familiar with Medi-Cal planning can explain lawful options, including using funds for necessary expenses, paying debts, making home repairs, or reviewing available asset protections.

Families can also contact their county Medi-Cal office for eligibility guidance.

New Wave Home Care does not provide legal or financial advice. This article is intended to help families understand the changes and prepare questions for qualified professionals.

Understanding the 2027 Medi-Cal Changes

In this video, New Wave Home Care explains the upcoming changes and shares a simple approach to preparing for them.

The main takeaway is to understand the rules, review your assets, and ask questions before making financial decisions.

A Simple Plan for Families to Prepare

Preparing for the new Medi-Cal asset limits doesn’t have to be overwhelming. Families can begin with three practical steps.

If siblings disagree about finances or future care needs, having a constructive family conversation can help everyone make decisions together. 

1. Know Which Rules Apply

Confirm whether your loved one’s Medi-Cal eligibility is subject to an asset test.

If they already receive Medi-Cal, review their eligibility documents and renewal notices. The Los Angeles County Department of Public Social Services can help clarify which rules apply.

Don’t assume that everyone receiving Medi-Cal faces the same financial requirements.

2. Count the Assets That Matter

Make a list of savings, checking accounts, investments, property, vehicles, and other financial resources.

Separate assets that may count from those generally excluded, and identify anything that needs clarification.

This will help your family understand whether the future limits could create an eligibility concern.

3. Ask Before Taking Action

If your loved one’s countable assets may exceed the new limit, contact the county Medi-Cal office and consult a qualified elder law attorney before making significant financial changes.

Pay attention to Medi-Cal renewal notices and respond by the stated deadlines.

Existing members whose coverage requires an asset test generally report their assets during renewal. Being above the applicable limit may affect eligibility, but coverage doesn’t automatically end simply because a new limit takes effect.

Los Angeles County residents can use BenefitsCal to manage benefits and complete eligible renewal tasks.

What Does This Mean for Paying for Care at Home?

Changes to Medi-Cal eligibility may affect long-term care planning, but Medi-Cal is not the only resource families can consider.

The best approach is to understand which services your loved one needs, what their existing coverage includes, and whether other financial resources are available.

Medi-Cal and In-Home Supportive Services

Eligible older adults may receive assistance at home through California’s In-Home Supportive Services, or IHSS.

According to the California Department of Social Services, IHSS helps eligible older adults and people with disabilities remain safely at home by providing assistance with approved daily activities.

Depending on an individual assessment, this may include personal care, meal preparation, housekeeping, shopping, and other authorized services.

IHSS has its own eligibility and assessment requirements. Qualifying for Medi-Cal does not automatically guarantee approval for every type of home care or payment to a particular home care agency.

Other Ways to Pay for Home Care

Families may also consider other financial resources.

Long-term care insurance may help cover personal care and assistance with daily activities, depending on the policy. Review benefit limits, waiting periods, and eligible providers.

Veterans benefits may provide additional support for qualifying veterans and survivors. The VA’s Aid and Attendance and Housebound programs offer additional pension benefits to eligible individuals who meet specific care and financial requirements.

Private pay allows families to arrange care using savings, income, or family contributions. This may offer flexibility when public benefits or insurance don’t cover certain services.

Some families combine these resources to create a care plan that meets their loved one’s needs. For more guidance, read our article on how to afford home care assistance when resources are limited.

Frequently Asked Questions

When Does the New Medi-Cal Asset Limit Start?

The lower limits are scheduled to begin July 1, 2027, subject to final DHCS policy and implementation readiness. Until then, the existing limits remain in place for affected programs.

Does My Parent’s House Count Toward the Limit?

A primary residence is generally excluded, although special rules may apply to nursing home residents. Additional homes and properties may count toward the limit.

Can We Give Money to Family Members to Qualify?

Some transfers are permitted, but giving away assets may affect future nursing home coverage. California’s look-back rules can result in penalties for certain transfers made on or after January 1, 2026. Consult an elder law attorney first.

Will Current Medi-Cal Members Lose Coverage Immediately?

No. Existing members are generally reviewed during their renewal process, and eligibility depends on their circumstances. Families should respond to renewal notices and contact their county office if they need assistance.

Planning Ahead Can Help Families Feel More Prepared

Medi-Cal changes can feel complicated, especially when you are already helping an aging parent navigate healthcare, finances, and everyday needs.

Understanding the rules early gives your family more time to review options, ask questions, and make informed decisions.

At New Wave Home Care, we understand that planning for senior care is about more than financial eligibility. It is about helping someone you love remain comfortable, independent, and supported in a familiar environment.

We provide compassionate in-home care for older adults and families in Pasadena, Los Angeles County, and surrounding Southern California communities, with services tailored to each person’s needs, routines, and preferences.

If your family is exploring in-home care options, contact New Wave Home Care or call (626) 314-7901 to learn how personalized support can help your loved one continue living at home with dignity and peace of mind.

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