Starting January 1, 2026, California will reinstate a $130,000 Medi-Cal asset limit for individuals, plus $65,000 for each additional household member. The asset cap was put into place in 2022, but was eliminated because of state budget problems.
This change means injured parties receiving disability-based Medi-Cal or IHSS will be able to keep at least $130,000 in assets and any amount of funds in a Medicare Set-Aside (MSA) account and still maintain eligibility for traditional or expanded Medicaid benefits including long-term care.
Who Is Affected:
Medi-Cal members and applicants whose eligibility is based on age (65+), disability (physical, mental, or developmental), or long-term care needs.
Key Information From the California Department of Healthcare Services:
- The asset limit is $130,000 for one person. Each additional household member adds $65,000 to the asset limit, up to 10 members per household.
- Assets include bank accounts, cash, and anything over one home and one vehicle.
- Some assets don’t count, like the home you live in, one vehicle, household items, and certain savings, like retirement accounts.
- If you are already a Medi-Cal member, assets will be reviewed at your annual renewal. Income rules are not changing.
For more on Medi-Cal eligibility changes, including new rules regarding undocumented Medi-Cal recipients, click here.
Give us a call or contact us with any questions about how Medicare Set-Asides can protect assets for injured claimants.
Pat Farber
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