Medi-Cal Asset Test Back for 2026 -

The California Department of Health Care Services has instructed county Medi-Cal offices to consider a person’s assets for Non-MAGI Medi-Cal eligibility beginning January 1, 2026. There has been no asset test for 2025 to qualify for certain Medi-Cal programs. The California state fiscal budget for 2025 – 2026 reinstates an asset test making individuals with assets over $130,000 ineligible for Non-MAGI Medi-Cal with a few exceptions.

Maximum asset for an individual is $130,000 and $195,000 for a couple in 2026.

Non-MAGI Medi-Cal Asset Test

There are two categories of Medi-Cal health insurance. The first is Modified Adjusted Gross Income (MAGI) generally offered to individuals under 65 years of age. MAGI Medi-Cal is the Affordable Care Act health insurance program for low-income individuals and families. There are special programs for pregnant women that also fall under MAGI Medi-Cal. Most people move into MAGI Medi-Cal beginning with an application through Covered California.

2026 asset limit does not apply to Covered California MAGI Medi-Cal.

Eligibility for MAGI Medi-Cal is based solely on the household income. Assets such as bank accounts, houses, cars, and investments are not considered. For adults, if the household income is under 138 percent of the federal poverty level, they qualify for MAGI Medi-Cal. Children are eligible for MAGI if the household is under 266 percent of the federal poverty level.

Virtually all the other Medi-Cal health care assistance programs are Non-MAGI. Non-MAGI Medi-Cal covers people who are disabled, blind, residing in a skilled nursing facility, or over 65 with Medicare. California eliminated any asset test in 2025. Consequently, eligibility for Non-MAGI Medi-Cal programs was based only on monthly income. The asset test is back for 2026.

Certain assets are excluded from the limits such as your primary residence.

The asset test for eligibility includes checking and savings accounts, retirement accounts, stocks, bonds and other assets that can be converted to cash. Not counted in the asset basket are your primary residence, one car, burial plot, furniture, household items, and certain burial funeral trusts.

Individual Assets Under $130,000 for Non-MAGI Medi-Cal

The 2026 asset test will be $130,000 and $65,000 for each additional household member. In other words, a single adult with assets over $130,000 will not qualify for Non-MAGI Medi-Cal. A married couple with assets over $195,000 will be ineligible for Non-MAGI Medi-Cal for either individual.

There will be three exceptions to the new asset test.

Disabled Adult Children, generally adults who became disabled as children.
Disabled Widow Program
Pickle Program where an individual received both Supplemental Security Income and Social Security income.

In addition, ABLE savings accounts are not counted in the asset determination according to a 2019 All County Welfare Directors letter.

Reinstatement of asset limits for non-MAGI Medi-Cal.

Implementation of 2026 Asset Limitation Test

The new asset test will be applied when current Non-MAGI Medi-Cal beneficiaries have their eligibility renewed. Some household changes may trigger an asset test review before the renewal month.

2025 applicants will not be subject to the asset test
2026 applicants requesting retroactive eligibility back into 2025 will not have their 2025 assets reviewed, but will need to list assets for 2026.
Renewal packets sent in 2025 for 2026 eligibility, will be subject to the asset test.
Applications after January 1, 2026, for Non-MAGI eligibility will need to list assets.
A household approved for Non-MAGI Medi-Cal in 2025, with no asset test, reports a change of income in 2026, will not have to report assets. They will have to report assets during their renewal period in 2026.

The calculations for income and assets can be complicated. Don’t assume that either your monthly income or total assets are above the Medi-Cal limits. County Medi-Cal case eligibility workers reduce income by certain expenses and may not count some assets or reduce the value of others. All this is to say that you should apply and let Medi-Cal make an eligibility determination. If you are denied, you can always appeal if you feel they made a mistake. But if you never apply, you will never know if you are eligible.

DHS All County Welfare Directors Letter of Asset Limit Reinstatement