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NewsTimes of San DiegoNovember 3, 2026San Diego County

California tightens Medi-Cal asset limits, risking health coverage for seniors and people with disabilities

Photo: Times of San Diego

California lawmakers have reinstated asset limits for low-income seniors and people with disabilities to qualify for Medi-Cal, capping eligible assets at $21,000 starting in July 2027. The budget adjustment follows a previous limit of $130,000 and the complete elimination of asset restrictions in 2024, as the state faces a $12 billion budget deficit. Experts estimate that state and federal budget reductions could leave more than 2.2 million Californians without medical coverage over the next four years.

HealthcareDisability RightsBudget & AppropriationsAging
Read the full story at Times of San Diego

Why It Matters

Low-income seniors and residents with severe disabilities must now their personal savings, retirement accounts, or life insurance policies below $21,000 to maintain essential in-home care services and medical coverage.

Key Facts

  • California lawmakers approved a state budget reduction that lowers the maximum allowable asset limit for low-income seniors and people with disabilities to qualify for Medi-Cal to $21,000, effective July 2027.
  • California previously eliminated asset restrictions entirely in 2024 before temporarily reinstating a $130,000 limit earlier in the year.
  • State budget deficits are estimated at approximately $12 billion, prompting reductions across state and federal healthcare programs.
  • Experts estimate that upcoming budget reductions could leave more than 2.2 million Californians without medical coverage over the next four years.
  • Primary residences and a single vehicle remain exempt from the asset calculation, but second homes, second cars, retirement accounts, life insurance policies, and some funeral plans count toward the limit.
  • Single individuals must continue meeting income requirements, currently fixed at approximately $1,800 monthly.
  • About 600 people lost Medi-Cal coverage earlier this year when the $130,000 asset limit was reinstated, with more expected to lose benefits under the $21,000 threshold.
  • State officials have not published official estimates detailing the exact total number of beneficiaries who will lose coverage under the new $21,000 limit.

Who's Mentioned

PersonLindsay Imai Hong“California director of Hand In Hand advocating against asset restrictions.”OrganizationLegal Aid Society of San Mateo County“Organization representing affected beneficiaries.”PersonCamille Nguyen“Attorney for Legal Aid Society of San Mateo County.”OrganizationTrump administration“Federal administration referenced regarding federal budget cuts.”PersonElizabette Guéçamburu“Resident of Patterson affected by disability support rules.”OrganizationHand In Hand“Advocacy organization for domestic workers and care recipients.”locationPatterson“Location of the family farm where Elizabette Guéçamburu lives.”PersonXavier Becerra“Democratic gubernatorial candidate whose campaign addressed program funding.”PersonJulia Feinberg“A 37-year-old therapist in Oakland affected by the Medi-Cal asset rules.”locationOakland“City where Julia Feinberg resides.”locationCalifornia“State implementing Medi-Cal asset limit changes.”PersonGavin Newsom“Governor of California who previously eliminated asset limits and later proposed”PersonSteve Hilton“Republican candidate for governor opposing asset limits.”