California Medi-Cal asset limits to tighten, affecting seniors and disabled

California lawmakers have approved budget changes that will lower the asset limit for low-income seniors and people with disabilities to $21,000 to qualify for Medi-Cal, starting in July 2027, Times of San Diego reported.

This is a reversal from 2024 when the state eliminated longstanding Medi-Cal asset limits, but since then lawmakers have gradually reinstated and tightened these limits, including reinstating a $130,000 asset cap earlier this year.

The new rules exempt a primary residence and one vehicle, but seniors and disabled individuals cannot own a second home or car and must keep savings, certain retirement accounts, life insurance policies, and burial plots below $21,000.

Advocates say these changes unfairly target older adults and people with disabilities, who often face high costs related to their care. One individual with a neuromuscular disorder said without Medi-Cal she would be confined to a nursing home rather than living independently.

The income eligibility limit remains about $1,800 per month for a single person. Experts estimate these cuts could push more than 2.2 million Californians off coverage in the next four years, doubling the state's uninsured rate.