Medi-Cal is changing. What California Seniors and People With Disabilities Need to Know
Updated: 5 days ago
For many Californians, Medi-Cal is an essential source of health coverage.
But beginning in July 2027, Californians who rely on Medi-Cal will face a dramatically tighter test to keep their coverage.
Here's what's happening, why, and what you can do now to prepare.
Please note that this article is intended as a general overview and is not a comprehensive guide to Medi-Cal eligibility or the new asset rules. There's a lot to cover depending on your individual circumstances and other factors. We have additional resources, below this article. If you're on Medi-Cal now, you can also speak to our Community Health Worker to get a better understanding of your situation. Contact us at 888-336-8322 or send an email to info@elderloveusa.org
What Is Medi-Cal?
Medi-Cal is California's Medicaid program which provides comprehensive health coverage services.
For many older adults and people with disabilities, it's the only realistic way to afford long-term care which can cost more per month than most people earn in a year.
Right now, the asset limit to qualify for Medi-Cal is $130,000 for an individual and $195,000 for a couple.
What's changing?
Starting July 1, 2027, those numbers drop sharply. The asset limit to qualify for Medi-Cal will just be $21,000 0 for an individual and just $31,000 for a couple.
Current Limit | New Limit (July 2027) | Decrease in percentage | |
Individual | $130,000 | $21,000 | 84% decrease |
Couple | $195,000 | $31,000 | 84% decrease |
Each additional household member | $65,000 | $1,550 | 98% decrease |
In plain terms: if your countable assets:
Money in your bank account
Cash
Secondary homes
Second vehicles
Other investments or financial resources
add up to more than $21,000 as a single applicant, you could lose eligibility when you apply or renew.
Why is this happening?
Two forces are driving the change:
Rising Medi-Cal costs. These cuts are part of an effort by the state to balance the state's budget.
Federal funding cuts. Billions of dollars in federal cuts stemming from the "One Big Beautiful Bill Act" have added pressure on California's budget.
Who is affected?
Statewide estimates have suggested that as many as 2 million Californians could be affected by asset and eligibility changes. These are people whose Medi-Cal eligibility is not based on federal income rules.
That includes people who:
Are 65 or older
Are blind or have a disability
Live in a nursing home or receive other long-term care services through Medi-Cal
Use a Medicare Savings Program
Who is NOT affected?
People whose eligibility is determined under federal Modified Adjusted Gross Income (MAGI) rules such as:
children
pregnant people
parents
working-age adults
This won't hit everyone on July 1, 2027, all at once. Assets are checked on a rolling basis, at each person's individual renewal date so your personal timeline depends on when your Medi-Cal renewal falls.
The Bigger Picture: What This Means for Care
Diana Camacho of California Health Care Foundation explained that losing Medi-Cal coverage doesn't eliminate someone's need for care it just shifts where and how they get it.
When people lose coverage:
They often delay care until conditions become more serious and more expensive to treat.
Public hospitals, community clinics, and county indigent care systems will be greatly strained due to rising demand and more uncompensated care.
What You Can Do Now
Even before the changes happen, it's best to be prepared now.
Talk to a professional. A qualified financial adviser or elder law attorney can help you understand your options and get a better understanding of your situation. They can also help you be aware of your rights. For example, if you receive a notice that your benefits will be canceled and you disagree, you can appeal and request a state hearing. Elder Love USA also has Community Health Workers that are trained and equipped with the knowledge about everything Medi-Cal. They can help you better understand your unique situation and give personalized and profesisonal advice. You can contact us at 888-336-8322 or send an email to info@elderloveusa.org
Kristen Hwang and Ana B. Ibarra of Cal-Matters also also suggests contacting the Health Consumer Alliance at 1-888-804-3536 or call the Medi-Cal state helpline at 1-800-541-5555 if you have any concerns.
Keep your contact information current. Update your address and phone number with your county benefits office so you don't miss important notices.
Watch your mail closely. With rules changing on a rolling, renewal-by-renewal basis, letters from the county or state about your specific situation matter more than ever.
If you or someone in your family could be affected, it is best to prepare now.
This article was made by Elder Love USA.
As the only nonprofit agency in California offering home care services, we are dedicated to providing compassionate affordable in-home care.
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Our rates are lower than other providers thanks to partnerships, donations, grants, and revenue from our cleaning program.
Our caregivers can assist with personal care, shopping, cooking, transportation, housekeeping, and case management.
We proudly serve Riverside County, CA, San Diego County, CA, San Bernardino County, CA, Orange County, CA, Imperial County, CA, and Phoenix, AZ.
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