California Medi-Cal Asset Limits Are Changing in 2027: What You Need to Know to Protect Your Assets

Planning for long-term care can be one of the most important aspects of estate planning. As the cost of care continues to rise significantly, understanding how Medi-Cal eligibility works and how your assets may be affected is an important step toward protecting your financial future.  

With California’s Medi-Cal asset limits changing again in 2027, now is a good time to understand your options and plan proactively.  

What Is Medi-Cal Planning?  

Medi-Cal is California’s Medicaid program, which provides health coverage to eligible individuals. For those who need qualifying long-term care services, Medi-Cal may help cover costs that could otherwise place significant financial strain on an individual or family.  

Medi-Cal planning involves evaluating your financial circumstances, understanding applicable eligibility rules, and considering how to prepare for potential future care needs while protecting assets where legally possible.  

What Is Changing With Medi-Cal Asset Limits in 2027?  

California reinstated asset limits for certain Medi-Cal eligibility categories in 2026. These rules apply to certain older adults, people with disabilities, and individuals who need long-term care, among others.  

For affected applicants and members, the published asset limits are scheduled to decrease on July 1, 2027:  

• Through June 30, 2027: $130,000 for one person, with additional allowances for eligible household members.  
• Beginning July 1, 2027: $21,000 for one person or $31,000 for two people, with additional allowances for eligible household members.  

Certain assets may be exempt, including a primary residence in qualifying circumstances and retirement accounts.  

Why Medi-Cal Planning Ahead Matters  

Waiting until a health crisis occurs can leave families with fewer options and less time to make informed decisions. Proactive planning can help you evaluate your circumstances before care becomes urgent.  

Consider these important questions:  

Could you afford long-term care? Understand how potential care costs could affect your savings, home, and retirement income.  

Are your assets structured appropriately? Review how your property is owned and whether your current estate plan addresses your long-term goals.  

Have you considered your spouse or family? Planning may need to account for a healthy spouse, dependent family members, or loved ones who rely on your financial support.  

Do you understand the transfer rules? Giving away assets or transferring property without advice can have unintended consequences, including potential delays in long-term care coverage.  

Could estate recovery affect your family? California may seek repayment from certain estates for qualifying Medi-Cal benefits. Understanding how estate recovery works is an important part of planning.  

Take the Next Step With Medi-Cal Planning  

Medi-Cal planning is not one-size-fits-all. The right approach depends on your assets, income, family circumstances, health needs, and long-term objectives.  

The best time to explore your options is before you need care.  

Our office can help you evaluate your estate plan, understand relevant planning considerations, and determine what strategies may be appropriate for your circumstances.  

Request a Medi-Cal planning consultation today to take a proactive step toward protecting your future and providing greater peace of mind for your family.  

Frequently Asked Questions (FAQs)

What is Medi-Cal planning?  

Medi-Cal planning involves evaluating your financial circumstances, understanding applicable eligibility rules, and considering how to prepare for potential future care needs. It also considers protecting assets where legally possible.  

What are the published Medi-Cal asset limits through June 30, 2027?  

For affected applicants and members, the published asset limit through June 30, 2027, is $130,000 for one person. There are additional allowances for eligible household members.  

What are the published Medi-Cal asset limits beginning July 1, 2027?  

For affected applicants and members, the published asset limits beginning July 1, 2027, are $21,000 for one person or $31,000 for two people. There are additional allowances for eligible household members.  

Why does planning ahead matter?  

Waiting until a health crisis occurs can leave families with fewer options and less time to make informed decisions. Proactive planning can help you evaluate your circumstances before care becomes urgent.  

Could estate recovery affect a family?  

California may seek repayment from certain estates for qualifying Medi-Cal benefits. Understanding how estate recovery works is an important part of planning.  

  

This article provides general educational and informational content and does not constitute legal advice. Consult an appropriately qualified attorney regarding your individual circumstances.  

If you have any further questions about estate planning and strategies to shield your wealth, or if you’d like to have your current asset protection plan reviewed to make sure it still meets your needs, please contact us at one of our offices located throughout the state of California 800-244-8814 to set up a consultation.