California’s Medicaid program, Medi-Cal, will reduce its asset limits by 84% on July 1, 2027.
Prior to July, those qualifying for Medi-Cal can have up to $130,000 in assets for one person, adding $65,000 for every other person in the household, up to 10 people. Next year, that limit will become $21,000 for one person, $31,000 for two people and $1,550 per additional person, up to 10 people.
In 2022, the state raised the asset limit from $2,000 to $130,000 for individuals. Then, in 2023, CMS approved California’s proposal to move away from those requirements. California reinstated asset limits at the beginning of 2026.
A 2025 budget document from Gov. Gavin Newsom estimated General Fund savings of $94 million for fiscal 2025-26, $540 million the following fiscal year and $791 million after, including in-home supportive services impacts. Those estimates stemmed from a suggested reinstatement of the $2,000 individual asset limit. That budget revision, designed to address a $12 billion deficit, was met with scrutiny by California hospitals.
Asset limits apply to those who are at least 65 years old, have a disability, reside in a nursing home or are in a family that makes too much to qualify for the program under federal tax rules. Assets include bank accounts, cash, second vehicles, second homes and other financial resources, regardless of location. Those on Medi-Cal will need to report assets when they renew coverage.
The update comes as Medicaid faces increased pressure in the wake of HR 1 and fraud, waste, and abuse efforts. Expansion states are facing more frequent eligibility checks and a 2027 deadline to implement work requirements. In July 2026, the federal government deferred roughly $867.5 million in Medicaid payments to California amid fraud concerns.
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