Medi-Cal Aged &  Disabled Federal Poverty Level
(A&D FPL) Program

As of 2026, California reinstated asset limits for many Medi-Cal programs (especially for seniors, disabled persons, long-term care, and Share-of-Cost Medi-Cal). Here’s the current structure and what happens if someone is over the limit.

Medi-Cal Asset Limits (2026)

For programs with an asset test (Aged/Blind/Disabled, Share-of-Cost, long-term care, Medicare Savings Programs):

• $130,000 for one person

• $195,000 for a couple

• +$65,000 for each additional household member (up to 10 people) (CalHealth Services)

These limits apply to countable assets, such as:

• Cash

• Bank accounts

• Stocks or brokerage accounts

• Certificates of deposit

• Additional real estate or second homes

• Extra vehicles (CalHealth Services)

Assets That Do NOT Count

Several assets are exempt, including:

• Your primary residence

• One vehicle

• Household goods and personal property

• Some retirement accounts if you are taking distributions

• Burial plots and certain prepaid funeral plans (CANHR)

This is why many people technically have more wealth than the limit but still qualify.

What If You’re Over the Asset Limit?

Yes — normally you must spend down assets until you fall below the limit.

Typical “spend-down” methods include:

Allowed spending

• Paying off debts (mortgage, credit cards, car loan)

• Home repairs or improvements

• Buying furniture or appliances

• Paying medical bills

• Prepaying rent or care costs

• Purchasing exempt assets (car, burial plan)

If your assets are still over $130,000 (or $195k for couples) when you apply or at renewal, Medi-Cal eligibility will be denied or terminated. (Justice in Aging)

Important Rule: Look-Back Period

For long-term-care Medi-Cal, California can review up to 30 months of financial history.

If someone gave away assets or transferred them for less than fair value, it can create a penalty period where Medi-Cal will not pay for care. (CunninghamLegal)

This is why planning is often done carefully with attorneys.

Example

Let’s say a single person has:

• $200,000 in savings

• A home they live in (not counted)

Since the limit is $130,000, they must spend down about $70,000 before Medi-Cal eligibility.

They could do that by:

• Paying off debts

• Home improvements

• Medical expenses

• Buying exempt items

A Key Exception You Probably Already Know

Because you work with Share-of-Cost Medi-Cal clients, this is important:

The asset test only applies to “non-MAGI” Medi-Cal (mostly seniors, disabled, and long-term care).

MAGI Medi-Cal (Affordable Care Act expansion) has no asset test at all — eligibility is based on income only. (Justice in Aging)

✅ Bottom line:

• Asset limit in 2026: $130k single / $195k couple

• If you exceed it, you generally must spend down assets before qualifying.

• Some assets (home, car, personal property) don’t count.

• Improper transfers can trigger penalties.

If you want, I can also explain three little-known strategies people use to qualify without just burning through their savings (these come up a lot in Medi-Cal planning and many agents don’t know them).

FAQ’s

Links & Resources

• Main Webpage on Medicare & Enrollment
• Publication 524 (2023), Credit for the Elderly or the Disabled  IRS.Gov *
• Publication 907 (2024), Tax Highlights for Persons With Disabilities  IRS.gov *
• Publication 554 (2024), Tax Guide for Seniors  IRS.Gov
• Negative MAGI Income  Carry Forward Loss  Our website
• The Health Consumer Alliance (HCA) is a statewide partnership that offers Free Over the Phone or In-Person Assistance to help California residents struggling to get or maintain health coverage and resolve problems with their plans.
• Disability Rights California (DRC) defends and improves the rights of Californians who have disabilities.
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Long Term Care Planning

Links – Resources

• Big change in Medi-Cal rules opens the door to more seniors  
• CA Health Advocates – Medi-Cal for People who have Medicare
• CANHR.org  *   Aged & Disabled
• Disability Benefits 101 
• Orange County Social Services Agency
• Chart – MAGI and NON-MAGI Qualification for Medi-Cal
• See also our site on Medi-Medi – both Medi-Cal and Medicare
• Insure Me Kevin.com – Friendly Competitor
• How to Report Income Change
• MC 239 Denial of Benefits
• Medi-Cal Eligibilty Procedures Manual Article 22 Disability 179 pages
• Medically Needy Program
• Program for All Inclusive Care For The Elderly
• Welfare & Instituions Code  General Provisions [14000 – 14042]