California Medi-Cal 5-Year Look Back Is Effective 2026

2027 California Medi-Cal Asset Limit Changes Are Coming. Start Planning Now!

medi-cal look back

Please call our office at (818) 241-4238 to schedule a phone consultation and discuss your options.

If you or a loved one may need help paying for long-term care now or in the near future, the upcoming changes to California’s Medi-Cal asset limits could significantly affect eligibility for Medi-Cal benefits. Proper planning today can help protect your savings and preserve your family’s financial security.

If you are already receiving Medi-Cal benefits and/or have IHSS care, you will be required to meet new asset limits.

What Is Changing in 2027?

Under California’s newly approved 2027 Medi-Cal budget:

Current 2026 Asset Limits:

  • $130,000 for an individual
  • $195,000 for a married couple

Effective July 1, 2027, Asset Limits Will Decrease To:

  • $21,000 for an individual
  • $31,000 for a married couple

What These Changes Mean for Families

The new asset limits represent a substantial reduction in the amount of savings and resources an individual or couple may retain while qualifying for Medi-Cal benefits. For many seniors and individuals with disabilities, these changes could impact long-term care planning, financial security, and access to essential healthcare services.

While the final limits are less restrictive than earlier proposals, many California families will still need to reevaluate their plans to ensure continued eligibility and asset protection.

Planning Ahead… Can Help Protect What You’ve Worked Hard to Build.

The good news is that there are legal planning strategies that may help protect assets while maintaining Medi-Cal eligibility. Every family’s circumstances are unique, and early planning often provides the greatest flexibility and protection.

Our Elder Law team can help you:

  • Understand how the new Medi-Cal rules may affect your family
  • Explore asset protection strategies
  • Plan for potential nursing home or assisted living costs
  • Preserve assets for a spouse and loved ones
  • Develop a comprehensive long-term care plan

Will Medi-Cal Asset Limits Decrease Again?

Many Elder Law professionals anticipate that California may continue to align its Medi-Cal eligibility rules more closely with the Federal Medicaid standards ($2,000 / $3,000) in 2028 or soon after.

Proper Medi-Cal planning NOW can help you stay ahead of potential changes and avoid unnecessary financial stress later. Timing is critical in this process.

Schedule a Phone Consultation (818) 241-4238

If you or a family member may require skilled nursing care or long-term care services in the coming years, now is the time to prepare.

Protect your assets. Preserve your eligibility. Plan with confidence.

Our mission is to help families in California with Medi-Cal planning.

What Seniors and Families Need to Know About the New Medi-Cal Asset Rules

California Medi-Cal eligibility rules are changing again beginning January 1, 2026 — including the return of a 5-year Medi-Cal “look back” period for certain long-term care benefits.

These changes may significantly impact seniors, disabled individuals, and families planning for nursing home care or long-term care assistance.

Joseph McHugh and the team at LA LAW Center help California families legally protect assets and prepare for Medi-Cal eligibility before the new rules take effect.

Call Today for a Consultation

(818) 241-4238

What Is the Medi-Cal 5-Year Look Back?

Beginning January 1, 2026, California will implement a 5-year look back period for certain Medi-Cal long-term care programs.

This means Medi-Cal may review financial transactions, gifts, and asset transfers made within the previous five years when determining eligibility for long-term care benefits.

Improper transfers could potentially create penalties or delays in qualifying for nursing home Medi-Cal coverage.

Because of these upcoming changes, early planning is critical and can be addressed with no penalties in California with experienced elder attorneys. We are LA LAW Center; can you help you!!

Important Medi-Cal Asset Limit Changes for 2026

California is also reinstating asset limits for many non-MAGI Medi-Cal programs.

2026 Medi-Cal Asset Limits

  • Single Individual: $130,000
  • Additional Household Member: Add $65,000 per person

Exempt Assets May Include:

  • Primary residence
  • One vehicle used for transportation
  • Household furnishings and personal belongings
  • Certain burial funds
  • Limited life insurance policies

Assets That May Count Toward Eligibility

  • Rental properties
  • Vacation homes
  • Investment accounts
  • Excess cash savings
  • Stocks and bonds

For married couples, additional spousal impoverishment protections and rules may apply.

Why Early Planning Matters

Families who may need long-term care or nursing home Medi-Cal should consider planning before January 1, 2026.

Waiting too long to transfer or restructure assets could create problems once the 5-year look back period becomes effective.

An experienced elder law attorney can help evaluate legal planning strategies designed to:

  • Preserve family assets
  • Protect a home or savings
  • Maintain Medi-Cal eligibility
  • Avoid unnecessary penalties
  • Prepare for future nursing home care

Every family situation is different, and planning should be customized carefully.

SSI Asset Limits Remain Unchanged

SSI resource limits currently remain:

  • Single Individual: $2,000
  • Married Couple: $3,000

Countable assets may include:

  • Bank accounts
  • Stocks and bonds
  • Additional vehicles
  • Non-exempt property

Certain exempt assets may still be protected under SSI rules.

Protecting SSI Benefits With a Special Needs Trust

Receiving an inheritance or lawsuit settlement may place SSI or Medi-Cal eligibility at risk.

Our office helps qualifying individuals establish Special Needs Trusts designed to preserve public benefits while protecting inherited assets.

Special Needs Trust planning may help:

  • Preserve SSI benefits
  • Maintain Medi-Cal eligibility
  • Protect inherited funds
  • Provide long-term financial support

Experienced Elder Law Guidance for California Families

Joseph McHugh and Kathy McHugh assist clients throughout California with:

  • Medi-Cal planning
  • Nursing home eligibility
  • Asset protection strategies
  • Long-term care planning
  • Special Needs Trusts
  • Elder law planning

Our office is located in Burbank and serves families throughout California.

Schedule a Medi-Cal Planning Phone Consultation

If you or a loved one may need long-term care, nursing home Medi-Cal, or help protecting assets before the new 2026 rules take effect, contact our office today.

Call: (818) 241-4238

Early planning can make a significant difference when preparing for Medi-Cal eligibility and protecting family assets.