Working Disabled Program 250% of FPL (WDP)

A Strategy to Reduce or Eliminate Medi-Cal Share of Cost

What Is the Working Disabled Program?

• The Working Disabled Program allows individuals with disabilities to work and still qualify for full-scope Medi-Cal. (42 U.S.C. § 1396a(a)(10)(A)(ii)(XIII))

• Email us [email protected]  

Why This Matters for Share of Cost

• Many individuals placed into Medi-Cal with a Share of Cost (SOC) may instead qualify for:

  • $0 share of cost Medi-Cal

• This works because WDP uses more favorable income rules, especially for earned income. (DHCS Medi-Cal Eligibility Procedures Manual § 5H)

How WDP Lowers Countable Income

• Earned income is not counted dollar-for-dollar. (20 CFR § 416.1112)

• Additional deductions may apply, including:

  • Impairment-related work expenses (IRWE) (20 CFR § 416.976)

• These rules can reduce income enough to:

  • Eliminate share of cost entirely

  • Or significantly reduce it

#Basic Eligibility Requirements

To qualify, an individual must generally:

• Meet the definition of disabled under Social Security rules (Social Security Act § 1614(a))

  • without regard to ability to perform substantial gainful activity. DHCS.Gov

• Have earned income (even part-time work qualifies) (42 U.S.C. § 1396a(a)(10)(A)(ii)(XIII))

• Meet Medi-Cal income requirements after exclusions (DHCS Manual § 5H)

Asset Rules (IMPORTANT – UPDATED FOR 2026)

• California previously eliminated the Medi-Cal asset test in 2024–2025.

• As of January 1, 2026, asset limits are reinstated, including for:

  • Working Disabled Program

  • Share of Cost Medi-Cal our webpage

  • Aged & Disabled programs our webpage

• Current limits:

  • $130,000 for an individual

  • +$65,000 per additional household member

• More on 2026 Asset Limits

When WDP Is a Strong Strategy

• You currently have a high share of cost

• You can do any level of work (even minimal income)

• You want predictable, affordable coverage instead of SOC

Key Planning Insight

• Even a small amount of earned income can unlock eligibility

• This creates a powerful strategy:

  • Shift from “spend down every month”

  • Email us [email protected]  

Bottom Line

• If you have Medi-Cal with a share of cost:

  • The Working Disabled Program may eliminate it entirely

  • While allowing you to earn income and keep coverage

• 

• Medi Cal working while disabled  dhcs.gov
  • 
  • pdf flyer 250 percent working while disabled  dhcs.gov
  • 
  • Email us [email protected]  

• Share of Cost vs
• Working Disabled Program vs
• Dental, Vision, Insurance Premium Strategy

Medi-Cal #Asset & Income 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 our webpage
• 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,  our webpage 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 our webpage
• Buying exempt items

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.
• Email us [email protected]  

If you want, Chat GBT 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).

SSI #Resources & Income Limits

• Medi-Cal section of the
  • Disability Benefits 101 website.
• Countable resources are the things you own that count toward the resource limit. Many things you own do not count.

 ^{CA Health Care Advocates *  DHCS}  *

1. 1.  asset questionnaire
   2. CANHR Fact Sheet
   3. Understanding Medi-Cal’s Asset Test for Seniors and People With Disabilities
   4. Western Poverty Law 
   5. Nolo - SSI Income & Asset Limits
   6. Income SSA.Gov
      1. SSA Site
   7. Will my settlement affect my government benefits?  VIDEO
   8. dhcs.ca.gov/Asset-Limit-Changes-for-Non-MAGI-Medi-Cal
      1. dhcs.ca.gov/asset test amendment
      2. dhcs.ca.gov/Asset-Limits-Report
   9. california healthline.org/sset-test-elimination
   10. FAQ's
   11. Our webpage on SSI Resources & Income
2. Have less than... of FPL  in countable monthly income for an individual ... for a couple). ^{ca health advocates.org ADFPL    *  AB 715 Fact Sheet * Western Poverty Law  *} 
   1. Share of Cost if income is too high, but you qualify on asset test?

Resources & Links

•  Insure Me Kevin.com  *
• DHCS.CA.Gov *
  • How to report assets Insure Me Kevin.com