I recently participated in Alzheimer’s OC Advocacy Day, where many of us spoke out against Governor Gavin Newsom’s proposal to reinstate the Medi-Cal asset test.
For decades, eligibility for Medi-Cal long-term care required individuals to have very limited assets—$2,000 for a single person, $3,000 for a couple, and up to $157,920 for a spouse of someone receiving institutional care. Certain assets are excluded from the calculation, such as:
-A primary residence
-One vehicle
-Prepaid burial plans
-Household items
-Most retirement accounts
As an attorney, helping people protect assets and still qualify for Medi-Cal was a large part of my practice for many years. We used legal tools to preserve savings while helping clients meet the strict financial rules.
That changed on January 1, 2024, when California became the only state to eliminate the asset test. Now, anyone with income below 138% of the federal poverty level can qualify for Medi-Cal—even if they have significant savings. About 150,000 people, many of them seniors, enrolled under this new rule.
Unfortunately, due to budget shortfalls, California is considering reinstating the asset test—despite opposition from groups like Alzheimer’s OC and other elder advocacy organizations.
It’s important to understand that every other state still enforces the asset test, along with a 5-year lookback that penalizes asset transfers. If California brings the test back, these same rules will likely apply again.
If you or a loved one is currently on Medi-Cal—or may need it soon—and you’re worried about what these changes could mean for your financial future, give me a call. I can help you understand your options and prepare before the rules change.
