Medi-Cal's Asset Limit Is Changing in 2027. Here's What Families Should Know

Quick answer: Since January 1, 2026, Medi-Cal counts assets again for people 65 and older and some other groups. Through June 30, 2027, the limit is $130,000 for one person, plus $65,000 for each extra person in the household. Starting July 1, 2027, under current law, it drops to $21,000 for one person and $31,000 for two. If Medi-Cal may help pay for Mom’s care, talk to your county Medi-Cal office and an elder law attorney well before July 2027.

Maybe Mom has some savings, a paid-off house and a small pension. Someone at church told her Medi-Cal “doesn’t look at savings anymore.” That was true for a while. It isn’t true now, and the rules change again in 2027.

This guide explains what the Medi-Cal asset limit is today, what changes on July 1, 2027, how the 30-month look-back works for nursing home care, and who to talk to. It’s general information, not legal or financial advice. Medi-Cal rules are detailed, and every family’s situation is different.

The short version

• California brought back the Medi-Cal asset limit on January 1, 2026, for people 65 and older and some other groups.
• Through June 30, 2027: $130,000 for one person, plus $65,000 for each extra person, up to 10.
• From July 1, 2027: $21,000 for one person, $31,000 for two, plus $1,550 for each extra person, up to 10.
• Some things don’t count, like the main home and one car. Cash, bank accounts and second homes do count.
• For nursing home Medi-Cal, gifts or transfers made on or after January 1, 2026, can be looked at for 30 months.
• Talk to your county Medi-Cal office, HICAP and an elder law attorney before you make big money moves.

Who does the Medi-Cal asset limit apply to?

Medi-Cal stopped counting assets on January 1, 2024. A state law passed in 2025 (AB 116) brought the asset test back on January 1, 2026 (DHCS All County Welfare Directors Letters 25-14 and 25-18).

The California Department of Health Care Services (DHCS) says assets count again for people who are (DHCS):

• 65 or older
• Living with a disability
• Living in a nursing home
• In a family that makes too much to qualify under federal tax rules

If you’re not sure which rules apply to your parent, ask the county Medi-Cal office.

What is the asset limit now, in 2026?

From January 1, 2026, through June 30, 2027, the limit is (DHCS):

• 1 person. Asset limit through June 30, 2027: $130,000.
• Each extra person (up to 10). Asset limit through June 30, 2027: Add $65,000.

DHCS says adult children who live with your parent aren’t counted in the family size for the asset limit.

What changes on July 1, 2027?

On July 1, 2027, the limit drops a lot (DHCS):

• 1 person. Asset limit from July 1, 2027: $21,000.
• 2 people. Asset limit from July 1, 2027: $31,000.
• Each extra person (up to 10). Asset limit from July 1, 2027: Add $1,550.

For a married couple, DHCS notes that Spousal Impoverishment rules may allow higher limits when one spouse needs long-term care. Ask the county Medi-Cal office how those rules apply to your parents.

If your parent already has Medi-Cal, DHCS says members report their assets at renewal. If their assets are over the limit at renewal, they may lose coverage. So the 2027 change can matter to people already on Medi-Cal, not just new applicants.

The surprise: The drop is big. A single person with $100,000 in savings and no other counted assets is under the limit in 2026 but would be well over the $21,000 limit after July 1, 2027.

What counts as an asset?

DHCS gives these examples (DHCS):

• Cash. Usually not counted: The main home.
• Bank accounts. Usually not counted: The main vehicle.
• Second homes. Usually not counted: Household items.
• Second vehicles. Usually not counted: Retirement funds, if your parent gets regular payments from them.

DHCS also says the home isn’t counted if your parent plans to return to it, or if a spouse or dependent relative lives there. These are general rules. The county decides what counts for your parent.

How does the 30-month look-back work?

For people who need Medi-Cal for nursing home care, Medi-Cal can look back 30 months at gifts or transfers of assets. DHCS says transfers made before January 1, 2026, aren’t counted. Transfers made on or after January 1, 2026, may lead to a penalty that delays nursing home coverage (DHCS).

That’s why it matters to get advice before moving money, giving gifts to family, or putting the house in someone else’s name. A move that looks helpful can cause a delay later.

What does this mean for assisted living?

Medi-Cal doesn’t pay for assisted living in general. The main help is the Assisted Living Waiver, which helps pay for care in some licensed assisted living homes. To use it, your parent needs full-scope Medi-Cal with no share of cost, so the asset limit matters. The waiver is offered in Sacramento County but not in Placer County, and there is a waitlist. People in the waiver still pay the home for room and board (DHCS). Our guide Does Medi-Cal Pay for Assisted Living? explains the waiver step by step.

Most families pay for assisted living or board and care privately, at least at first. Licensed care homes in the greater Sacramento region typically cost $4,000 to $15,000 a month. A few homes charge less, but a price under $4,000 a month is rare. These are planning ranges, not quotes.

• Board and care, shared room. Typical monthly range: $5,000 to $7,000.
• Board and care, private room. Typical monthly range: $6,000 to $9,000.
• Assisted living, studio, light care. Typical monthly range: $5,500 to $8,000.
• Assisted living, one bedroom, moderate care. Typical monthly range: $7,000 to $10,000.
• Memory care. Typical monthly range: $8,000 to $13,000.

Savings can go quickly at these prices, so it helps to plan how long the money will last and what comes next. Our guide How to Pay for Senior Care in Sacramento and Placer covers all the ways families pay.

A planning timeline for families

• Now: Make a simple list of your parent’s income, bank accounts, property and policies. Find out who can sign for your parent if needed. Our guide Power of Attorney and Moving Mom or Dad Into Care can help.
• Before any big gift, sale or transfer: Talk to an elder law attorney first, because of the 30-month look-back for nursing home Medi-Cal.
• If your parent already has Medi-Cal: Watch for the renewal packet and ask the county office how the July 1, 2027, limit affects them.
• If you live in Sacramento County and may want the Assisted Living Waiver: Ask early, because there is a waitlist.
• Early 2027: Check DHCS for any updates before July 1, 2027. Rules and dates can change.

Who should you talk to?

• Your county Medi-Cal office handles applications and renewals, and can tell you how the rules apply to your parent.
• HICAP gives free Medicare counseling and can help you understand how Medicare and Medi-Cal fit together: (916) 376-8915 or (800) 434-0222 (Agency on Aging Area 4).
• Agency on Aging Area 4 gives free information to older adults and families in Sacramento and Placer counties: (916) 486-1876 or (800) 211-4545 (Agency on Aging Area 4).
• An elder law attorney can look at your parent’s whole situation and explain the options under the current rules.

How Nonna Placements works: Nonna Placements is free to families. The home pays our fee when someone moves in, so families never pay us. You can choose any home. If the first home doesn’t work out, we find another for free. This article is general information, not medical, legal or financial advice.

Planning ahead? Call or text us

Rules about money are for the county and an attorney. Finding a home that fits Mom’s needs and budget is where we help. Tell us what she needs and what you can spend each month, and we’ll look for homes that fit. If she’s staying home for now, call or text us and we can help you find in-home care options.

Nonna Placements helps families across California, with a focus on Placer and Sacramento counties. We only suggest homes we’ve seen ourselves. We can come on tours with you. For out-of-state families, we offer video tours. It’s free to your family, because the home pays our fee.

Call or text (916) 261-2644 or email roberto@nonnaplacements.com. We reply within 1 hour, 24/7.

Before you make any money decisions based on these changes, talk to an elder law attorney.

Related reading: How to Pay for Senior Care in Sacramento and Placer · Does Medi-Cal Pay for Assisted Living? · Nursing Home or Assisted Living After a Hospital Stay? · Does Social Security Pay for Assisted Living? · Senior living in Sacramento

Sources

• DHCS All County Welfare Directors Letter 25-14

• California Department of Health Care Services, Asset limit frequently asked questions (checked November 1, 2026): dhcs.ca.gov
• California Department of Health Care Services, Medi-Cal changes (checked November 1, 2026): dhcs.ca.gov
• California Department of Health Care Services, All County Welfare Directors Letter 25-18 (checked November 1, 2026): dhcs.ca.gov
• California Department of Health Care Services, Assisted Living Waiver (checked November 1, 2026): dhcs.ca.gov
• Agency on Aging Area 4, Placer County services and Contact us (checked November 1, 2026): agencyonaging4.org

About the author

Roberto Hategan is the CEO & Founder of Nonna Placements, a senior placement service in Granite Bay serving families across California, with a focus on Placer and Sacramento counties. We only suggest homes we’ve seen ourselves. Contact: roberto@nonnaplacements.com

Photo credits: Jakub Zerdzicki, Bich Tran and Mikhail Nilov, via Pexels, Pexels License.