Older Californians and people with disabilities who rely on Medi-Cal will face a far lower ceiling on their savings starting in July 2027, when the program's asset limit falls to $21,000, CalMatters reports.
The cut was part of the state budget approved in June. It follows two years of reversals: California eliminated Medi-Cal asset limits in 2024, brought back a $130,000 limit at the start of this year, and then agreed to lower it again.
What counts
A primary home and one vehicle are exempt. A second home or second car is not allowed, and people 65 and older or with disabilities will be capped at $21,000 across savings, some retirement accounts, life insurance and even burial plots, according to the report. Medi-Cal's income test, roughly $1,800 a month for one person, still applies.
State figures show roughly 600 people were dropped when the $130,000 cap took effect. The state did not publish an estimate of how many would lose coverage at $21,000 before lawmakers approved it. Advocates expect the number to be much larger.
How it got here
Gov. Gavin Newsom ended the asset test in 2024 after years of lobbying by senior and disability groups. Facing a $12 billion shortfall, he later proposed restoring the old $2,000 limit, saying enrollment had run at more than double what was projected. The Legislature rejected that and settled on the higher figures.