Medi-Cal Countable vs. Exempt Assets in 2026: What California Counts for Long-Term Care

On January 1, 2026, California brought back an asset test for many older and disabled Medi-Cal members, including people who need long-term care. If your parent may need Medi-Cal to help pay for a nursing home or the Assisted Living Waiver, the Medi-Cal asset limit 2026 rules now decide who qualifies, and another big change is scheduled for July 2027.

This guide focuses on one question families ask most: what does Medi-Cal count, and what does it ignore? It covers the 2026 limits, the house, cars, retirement accounts, burial plans, couples, legal ways to spend down, and the 2027 cut. For the full picture of Medi-Cal eligibility, including income rules and how to apply in San Diego County, see our Medi-Cal eligibility guide.

This article is general information, not legal or financial advice. Medi-Cal rules are complex and change often, so confirm your parent’s situation with the San Diego County Medi-Cal office or a California elder law attorney before moving or giving away assets.

What Is the Medi-Cal Asset Limit in 2026?

The Medi-Cal asset limit 2026 is $130,000 for one person, plus $65,000 for each additional household member, up to 10 people. A married couple applying together can therefore have up to $195,000 in countable assets. These limits took effect January 1, 2026, and run through June 30, 2027, according to the California Department of Health Care Services (DHCS).

Who the asset limit applies to:

• Medi-Cal members age 65 and older
• Members with a disability
• People living in a nursing home
• Some families whose income is too high to qualify under federal tax-based rules

From 2024 through 2025, California had no asset limit for these groups, so many families who planned during that window may now be over the limit. If your parent qualified before 2026, check how the reinstated test affects them at their next renewal.

The 2027 Change: A Much Lower Asset Limit

Starting July 1, 2027, DHCS says the Medi-Cal asset limit drops to $21,000 for one person and $31,000 for two people, plus $1,550 for each additional household member, up to 10. That is roughly an 84% cut from the 2026 level, and it will make planning far more important for families with modest savings.

What this means in practice:

• A single parent with $100,000 in savings could qualify under the 2026 limit but would be well over the July 2027 limit.
• Families planning a move to a nursing home or the Assisted Living Waiver in 2027 should talk with an elder law attorney well before the change.
• Exempt assets matter more. As the countable limit shrinks, knowing what Medi-Cal ignores becomes the core of planning.

Rules can still change before July 2027 through the state budget. Watch for county notices and check the DHCS website for updates.

Countable Assets: What Medi-Cal Adds Up

Countable assets are the resources Medi-Cal adds together to compare against the asset limit. They include cash, checking and savings accounts, stocks, bonds and mutual funds, second homes and other real estate, second vehicles, boats and RVs, cryptocurrency, and money held in a revocable trust.

Common countable assets:

• Cash, checking, savings, money market accounts and CDs
• Stocks, bonds, mutual funds and brokerage accounts
• Real estate other than the primary home that is not used for a business or to produce self-support
• A second car, motorcycle, boat or RV
• Cryptocurrency and e-cash
• Assets in a revocable living trust
• Cash value of life insurance policies with a face value above $1,500
• Burial funds above the exempt amount
• Retirement accounts that are not paying out regularly (see below)

For example, a widowed father in La Mesa with $60,000 in savings, a $70,000 brokerage account and a paid-off home would have about $130,000 in countable assets, right at the 2026 limit. His home would not count while he lives there or intends to return.

Exempt Assets: What Medi-Cal Does Not Count

Exempt assets are things Medi-Cal does not count toward the asset limit. The main ones are your parent’s primary home, one vehicle, household goods and personal belongings, retirement funds that are paying out regularly, burial plots and irrevocable prepaid burial plans, small life insurance policies, and property used in a business.

Key exempt assets under the 2026 rules:

• The primary home, while your parent lives there or intends to return (more below)
• One vehicle used for transportation
• Household goods and personal items, such as furniture, clothing, musical instruments, electronics, computers and collections
• Retirement funds in payout status, meaning your parent receives regular payments (the payments count as income)
• Burial plots, irrevocable prepaid burial plans, and up to $1,500 in designated burial funds
• Life insurance with a total face value of $1,500 or less
• Business property and tools used for self-employment or self-support

Exempt status can depend on details. A second home rented to tenants, for example, may be treated differently from a vacant one. Have your county eligibility worker or an attorney review anything unusual.

Is the House Exempt When a Parent Moves Into Care?

Usually, yes. Medi-Cal does not count your parent’s primary home if they live there, intend to return, or if a spouse, registered domestic partner or dependent relative still lives there. Intent to return generally keeps the home exempt even during a long nursing home stay, but additional homes always count.

Things to know about the house:

• Intent to return is usually a statement your parent makes on the application. It does not require a doctor to predict a return home.
• If the house is sold, the proceeds become cash, which is countable. Many families are surprised when a sale pushes a parent over the limit.
• Renting the house keeps it as real property, but the rent counts as income. See our guide to renting out a parent’s home to fund care.
• Federal changes scheduled for future years, including a cap on home equity for Medicaid long-term care, may affect high-value homes later. Ask an elder law attorney how these could apply.

If you are weighing a sale to pay for private care first, our guides to selling a parent’s home to pay for senior care and Prop 19 and a parent’s home explain the tax and timing questions.

Cars, Retirement Accounts and Life Insurance

One car is exempt regardless of value; extra vehicles count. Retirement accounts such as IRAs and 401(k)s are exempt only when your parent is receiving regular payments, and those payments count as income. Life insurance is exempt if the total face value is $1,500 or less; above that, the cash surrender value counts.

Cars. The exemption covers one vehicle used for transportation. A second car, an RV or a boat counts at its value.

Retirement accounts. An IRA sitting untouched may be counted as an asset. Setting up regular distributions can change how it is treated, but it also increases monthly income, which affects your parent’s share of cost. This is a decision to make with an attorney or financial professional who knows Medi-Cal.

Life insurance. Term policies with no cash value generally do not add to assets. Whole or universal life policies with a cash value can, if the face value exceeds $1,500.

Annuities and trusts. These have their own complex rules. Assets in a revocable trust count. Irrevocable trusts and annuities need professional review.

Married Couples: Spousal Impoverishment Protections

When one spouse needs long-term care and the other stays at home, Medi-Cal’s spousal impoverishment rules let the at-home spouse keep a larger share of the couple’s assets. For 2026, the Community Spouse Resource Allowance is $162,660, applied at the initial application. The home, one car and other exempt assets are protected on top of that.

Key points for couples:

• The at-home spouse, called the community spouse, can keep up to the resource allowance in countable assets.
• Transfers between spouses do not trigger a penalty.
• The community spouse may also keep part of the couple’s income through a separate monthly allowance.
• Once the spouse in care is found eligible, the at-home spouse’s assets are generally not counted at annual renewals.

DHCS directs couples to ask the county about spousal impoverishment protections. If one spouse needs care and the other is still at home, see our guide for when a spouse can no longer provide care at home.

Spend-Down, Transfers and the 30-Month Look-Back

Spending down means using countable assets on legitimate expenses until your parent is under the Medi-Cal asset limit. Giving assets away is different: for long-term care, Medi-Cal reviews transfers made in the 30 months before nursing home entry, and gifts made on or after January 1, 2026 can trigger a penalty that delays coverage.

Common, allowable ways to spend down:

• Paying for your parent’s care, including private-pay months in a board and care home in San Diego
• Paying off debts, such as credit cards or a mortgage
• Home repairs or modifications to the exempt home
• Buying an irrevocable prepaid funeral or burial plan
• Replacing an old car with a reliable one (one car is exempt)
• Buying needed items such as hearing aids, dental work, a wheelchair or clothing

Transfers DHCS says do not cause a penalty include transfers to a spouse, to a blind or disabled child, and selling assets for full value. Transfers made before January 1, 2026 are not counted.

Be cautious with “Medi-Cal planning” offers from anyone who is not a licensed attorney. Mistakes with transfers can delay coverage for months.

How Medi-Cal Assets Affect Senior Care Choices in San Diego

Medi-Cal pays very differently across senior care settings. Long-term Medi-Cal covers nursing home care for those who qualify. In board and care and assisted living, Medi-Cal does not pay room and board, but the Assisted Living Waiver can pay the care portion in participating homes. Assets decide eligibility for both.

What this looks like in San Diego:

• Nursing homes. Long-term Medi-Cal covers care in Medi-Cal certified nursing homes in San Diego, with most of your parent’s income going to a share of cost.
• Assisted Living Waiver. Pays for care in participating RCFEs, with your parent paying room and board. Slots are limited. See our guide to the Medi-Cal Assisted Living Waiver in San Diego.
• Private pay first. Many families use savings to pay for board and care, typically about $5,500 to $9,500 a month in San Diego in 2026, then apply for Medi-Cal programs once assets are spent down.

Our comparison of long-term Medi-Cal in a nursing home vs. board and care explains the trade-offs, and low-income senior care options in San Diego County covers other programs.

How Elder Answers Helps

Elder Answers is not a law firm and does not give legal or financial advice, but we have helped San Diego families for well over a decade find residential senior care that fits real budgets. Our advisors know which homes accept the Assisted Living Waiver, which offer lower rates for shared rooms, and how to plan a private-pay stay that lasts.

Our service is free for families because care homes pay us after a resident moves in, and the rate you pay does not change. We share your information only with homes you choose. Contact Elder Answers to talk with a local advisor.

Frequently Asked Questions About the Medi-Cal Asset Limit in 2026

What is the Medi-Cal asset limit for 2026?

For 2026, the limit is $130,000 for one person and $65,000 for each additional household member, up to 10. A couple can have up to $195,000 in countable assets. These limits apply from January 1, 2026 through June 30, 2027.

What will the Medi-Cal asset limit be in 2027?

Starting July 1, 2027, DHCS says the limit drops to $21,000 for one person and $31,000 for two, plus $1,550 for each additional person. Families who expect to need Medi-Cal long-term care should plan before that date.

Does Medi-Cal count my parent’s house?

Generally no, if it is the primary home and your parent lives there, intends to return, or a spouse or dependent relative lives there. Second homes and other real estate count. If the home is sold, the cash proceeds are countable.

Are IRAs and 401(k)s counted for Medi-Cal?

Retirement funds are exempt only when your parent is receiving regular payments, and those payments count as income. Retirement accounts that are not paying out may be counted. Talk with an attorney before changing distributions.

What is the Medi-Cal look-back period in 2026?

For long-term care, Medi-Cal reviews transfers made in the 30 months before nursing home entry. Gifts made on or after January 1, 2026 can cause a penalty period. Transfers made before that date are not counted.

Can my parent give money to family to qualify for Medi-Cal?

Gifts made on or after January 1, 2026 can delay long-term care coverage. Transfers to a spouse or a blind or disabled child, and sales for full value, do not cause a penalty. Get advice from a California elder law attorney before making any transfer.

How much can a spouse keep if the other spouse goes to a nursing home?

For 2026, the at-home spouse can keep countable assets up to the Community Spouse Resource Allowance of $162,660, in addition to the home, one car and other exempt assets. The county applies this at the initial application.

Does Medi-Cal pay for board and care homes?

Medi-Cal does not pay room and board in board and care or assisted living. The Medi-Cal Assisted Living Waiver can pay the care portion in participating homes for people who qualify, but slots are limited. Most families pay privately for board and care.