California has long been a leader in broadening Medi‑Cal access. Asset limits for seniors and individuals with disabilities were increased in 2022 and fully eliminated in 2024—allowing many to qualify without depleting their small savings. Now, however, looming federal Medicaid cuts and California’s $68 billion budget shortfall may threaten those gains. Read more about it here.

What’s Changing?

Governor Newsom’s 2025‑26 State Budget proposal includes reinstating the original asset test:

• $2,000 for individuals; $3,000 for couples
• Applies to adults aged 65+ and persons with disabilities
• Enforced no earlier than January 1, 2026 Read about it Here.

Previously, those limits forced low-income seniors and people with disabilities into poverty. The 2024 repeal of asset limits eliminated the “senior cliff,” allowing individuals to retain modest savings. Read more about it here.

Why It Matters

Advocacy groups and legislators worry that reintroducing the asset test:

• Will force people to “spend down” savings to qualify
• Could drive seniors into deeper poverty, even homelessness. Read more about it here.
• Might shift costs to emergency care or institutional settings
• Undermines the intention of allowing financial flexibility

Moreover, this is coupled with other threats: cuts to IHSS (In‑Home Supportive Services) and programs for undocumented immigrants. Read more about it here.

What This Means for You

If you’re 65+, or have a disability and count on Medi‑Cal:

• Review your current assets: savings, accounts, secondary homes, extra vehicles, insurance, etc.
• Assess risk: Even modest savings over $2,000 could jeopardize coverage.
• Plan strategically: Explore legal methods to protect assets (trusts, estate planning, home equity exemptions).
• Consider timing: If asset limits are reinstated in 2026, planning ahead matters.

Why Talk to an Attorney

Navigating asset protection under changing Medi‑Cal rules is complex. An experienced elder law or estate planning attorney can help you:

1. Determine Medi‑Cal status: Understand your current eligibility and asset exposure.
2. Map out strategies: Consider trusts, annuities, property exemptions, and spouse-asset preservation.
3. Implement before deadlines: Asset shifts must be completed well before new rules take effect.
4. Avoid look-back pitfalls: Medi‑Cal applies a 30-month “look-back”—be mindful of recent planning moves.

Bottom Line

California’s proposed Medi-Cal asset test rollback could strip access from thousands of vulnerable adults. If you rely on Medi‑Cal and have even modest savings or resources, now is the time to get informed.

🔹 Talk to an elder law or estate planning attorney about your situation, especially if you’re approaching 65 or living with a disability. Getting professional guidance now could protect your access to care and dignity later.

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