Starting from January 1, 2026, the California Department of Health Care Services (DHCS) will resume individual asset reviews for Medi-Cal applicants and recipients, while retaining a 30-month lookback period for assets. Officials stated that individuals may lose their Medi-Cal benefits if their assets exceed the specified limit.
Medi-Cal in California is a Medicaid program provided by the state government, offering free or very low-cost health insurance to eligible applicants. Currently, nearly 15 million Californians are benefiting from this program.
Apart from meeting certain eligibility criteria, the key factor for applying for Medi-Cal is the applicant’s income. Based on the 2026 Federal Poverty Level (FPL) standards, Californians applying for Medi-Cal (e.g., single adults) must not exceed an annual income of $21,597. Starting in 2026, the DHCS will reinstate asset reviews when determining eligibility for applicants.
Alina Chen, a senior insurance and financial broker at Fangyuan Insurance, mentioned that Medi-Cal applications used to undergo asset reviews, which were temporarily suspended during the pandemic. She highlighted that next year when the reviews resume, seniors applying for Supplemental Security Income (SSI) or renewing their Medi-Cal will face stricter asset evaluations.
So, who exactly will undergo asset reviews? According to the DHCS, the review criteria apply to individuals aged 65 or over, disabled individuals, residents of nursing facilities, or families exceeding the income thresholds set by federal tax laws.
As per asset limit regulations, individual assets for Medi-Cal recipients cannot exceed $130,000, with an increase of $65,000 allowed per additional family member, up to a maximum of 10 individuals. Those exceeding the asset limits may risk losing Medi-Cal coverage.
The DHCS website specifies that Medi-Cal holders’ assets considered for review include bank deposits, cash, secondary properties, and additional vehicles, while primary residences and regularly used vehicles are excluded from the assessment.
If a Medi-Cal holder transfers assets within a specific timeframe, the DHCS retains a 30-month lookback period for asset assessment.
Californians who do not qualify for Medi-Cal due to income or asset reasons can still enroll in Covered California until January 31, 2026.
Furthermore, individuals seeking to apply for or renew Medicare (commonly known as the “red-blue card”) must complete the process before the December 7 deadline. Medicare is a federal insurance program operated by the U.S. government for individuals aged 65 and older, disabled individuals, and those with specific medical conditions.
Chen also warned individuals that one cannot simultaneously hold both Medi-Cal and Covered California. If someone inadvertently purchases Covered California without remembering their Medi-Cal application, upon receiving a notice of “health insurance overlap,” they should promptly address the issue by closing the previous Medi-Cal case.
Despite the attractive benefits of Medi-Cal, more individuals are opting to pay monthly premiums rather than utilize Medi-Cal. Chen explained that apart from many doctors not accepting Medi-Cal, there is a hidden risk associated with using Medi-Cal.
“For example, if you own a primary residence and are eligible for Medi-Cal now, the government can retroactively retain claims. If you spend a substantial amount and sell your house in the future, you will need to reimburse the government first from the proceeds. The government has the authority to deduct the owed amount directly from the sale proceeds,” she noted.