How Medi-Cal Can Help Pay for Long-Term Care in California

Q: Will the asset limit change again?

Yes — it's scheduled to drop sharply to $21,000 for an individual and $31,000 for a couple starting July 1, 2027, unless the law changes again before then.

Q: What if my income is over California's limit?

California doesn't use a hard income cap for nursing home Medi-Cal the way most states do — excess income creates a 'Share of Cost' you pay before Medi-Cal covers the rest, rather than disqualifying you outright.

Published August 28, 2026 How we keep this accurate

This page is California-specific. Medicaid long-term care rules vary significantly by state. See our national Medicaid Waivers Explained guide if you're elsewhere.

A genuinely unusual timeline

California eliminated its Medi-Cal asset limit for long-term care entirely on January 1, 2024 — for two years, seniors could qualify regardless of savings. That changed January 1, 2026: under AB 116, an asset limit returned at $130,000 for an individual and $195,000 for a married couple applying together (plus $65,000 for each additional household member, up to 10 people).

This is far more generous than most states. Compare this to Connecticut's $1,600 limit or the $2,000 federal standard most states use — California's reinstated limit is dramatically higher.

But it's scheduled to drop sharply. Starting July 1, 2027, the limit falls to just $21,000 for an individual and $31,000 for a couple — far below the current 2026 figures. If you're planning around today's higher limit, know that this window may be temporary.

Income works differently here: Share of Cost

Unlike most states, California doesn't apply a hard income cap that disqualifies you for nursing home Medi-Cal. Instead, excess income becomes a Share of Cost (SOC) — a predetermined Maintenance Need Allowance ($600/month individual, $934/month couple in 2026) is deducted from your countable income, and the remainder is what you owe toward care before Medi-Cal covers the rest. For HCBS waivers specifically, the income limit is $1,801/month (2026).

Seven HCBS waiver pathways

California offers more home-and-community-based options than most states, each with its own eligibility rules: HCBA, ALW, MSSP, CBAS, PACE, IHSS, and SDP. IHSS (In-Home Supportive Services) is the most commonly used for seniors wanting help at home rather than institutional care — eligibility and waitlist rules vary by pathway, so confirming which applies to your situation with a county caseworker matters more than guessing from the name alone.

Spousal protections and home equity

Community Spouse Resource Allowance: the non-applicant spouse can keep up to $162,660 in 2026, on top of the applicant's own $130,000 — meaning a couple could protect up to $292,660 combined before spend-down is required.

Monthly Maintenance Needs Allowance: $4,066.50/month — California uses the federal maximum, providing strong income protection for the spouse remaining at home.

Home equity limit: $1,071,000 — the highest in the country by a significant margin, reflecting California real estate values. Your primary home is exempt up to this amount if you, your spouse, or a dependent lives there.

The look-back period is shorter here — and phasing in

California's transfer-penalty look-back period is 30 months — shorter than the 60-month period most states use. It's returning gradually: starting July 1, 2026, one additional month gets reviewed each month, until the full 30-month look-back applies to anyone entering long-term care on or after July 1, 2028. In practice, this means the exact review window depends on when you apply, not a single fixed date.

How to actually start

Apply through BenefitsCal online, your county Medi-Cal office, or by paper form — county caseworkers can confirm which of the 7 HCBS pathways actually fits your situation.

Given the 2027 asset-limit reduction is already scheduled, this is exactly the kind of timing decision worth discussing with a real elder law attorney now — see Questions to Ask an Elder Law Attorney before assuming today's higher limit will still apply later.

Common Questions

What is California's current Medi-Cal asset limit for long-term care?

$130,000 individual / $195,000 couple, reinstated January 1, 2026 after being eliminated entirely in 2024-2025.

Will the asset limit change again?

Yes — it drops to $21,000/$31,000 starting July 1, 2027 unless the law changes before then.

What if my income is over California's limit?

California uses a Share of Cost model rather than a hard disqualifying cap for nursing home Medi-Cal — you pay a set amount, Medi-Cal covers the rest.