Medi-Cal Long-Term Care Asset Rules in California

Editorial note: This page is education only. We are not a law firm, an elder-law attorney, a Medi-Cal planner, an insurance agent, or a tax advisor. Rules change, county application varies, and figures are updated by DHCS each year. Before you file an application, transfer property, or sign a spend-down plan, work with a licensed California elder-law attorney, ideally a Certified Elder Law Attorney (CELA).

Last updated: August 15, 2026 · By Gold California Editorial

Medi-Cal is California's Medicaid program. Long-Term Care Medi-Cal is the track that pays for skilled nursing facility care, subacute care, and certain home and community-based waiver services when a resident cannot afford to pay privately.

Two rule sets matter for eligibility: an income test and an asset test. California eliminated the asset test on January 1, 2024. That was a policy setting, not a permanent repeal. An asset limit returns on January 1, 2026, and existing rules on income, transfers, and estate recovery continue throughout.

This page walks through the current California rules under Title 22 of the California Code of Regulations, Welfare and Institutions Code section 14009.5, and the DHCS All County Welfare Directors Letter (ACWDL) series. Every claim traces to a numbered source at the bottom.

What Long-Term Care Medi-Cal covers

Medi-Cal has two eligibility tracks. MAGI Medi-Cal, expanded under the Affordable Care Act, uses income only and has no asset test. Non-MAGI Medi-Cal uses both income and, when the limit is in effect, an asset test. Long-Term Care Medi-Cal is a non-MAGI program.

The Long-Term Care track covers institutional care in a licensed skilled nursing facility (SNF) or an intermediate care facility (ICF). It also covers certain home and community-based waiver services, including the Assisted Living Waiver, the Nursing Facility / Acute Hospital Waiver, and the Multipurpose Senior Services Program (MSSP).

The federal statutory frame lives in 42 USC 1396a and 42 USC 1396d. The California implementation lives in Welfare and Institutions Code section 14005 and following, with the eligibility rules in Title 22 CCR 50000 and following.

The 2024 asset rule change: what SB 184 did

Senate Bill 184 (2022), the health omnibus budget trailer bill for the 2022-23 state budget, was chaptered as Chapter 47, Statutes of 2022. It amended Welfare and Institutions Code section 14005.62 to phase out the non-MAGI asset limit in two steps.

The first step took effect July 1, 2022. Under DHCS ACWDL 22-16, the asset limit rose from 2,000 dollars for an individual and 3,000 dollars for a couple to 130,000 dollars and 195,000 dollars respectively, plus 65,000 dollars for each additional household member.

The second step took effect January 1, 2024. Under DHCS ACWDL 23-25, all asset limits for non-MAGI Medi-Cal, including Long-Term Care and Aged, Blind and Disabled programs, were eliminated. Income rules and Share of Cost continued to apply.

The elimination was tied to state funding. When California budget conditions changed, DHCS announced through ACWDL 25-14 that an asset limit will return on January 1, 2026 at the 2022 levels.

Sources: California Welfare and Institutions Code section 14005.62; SB 184 (2022), Chapter 47, Statutes of 2022; DHCS ACWDL 22-16, 23-25, and 25-14; CANHR 2026 Asset Limit Reinstatement Frequently Asked Questions (Fact Sheet 52); MC 007 supplemental property form. Checked August 2026.

The current asset limit: 2024, 2025, and January 2026

For applications filed and renewals processed from January 1, 2024 through December 31, 2025, non-MAGI Medi-Cal does not apply an asset test at all. Applicants list assets only for reference, and asset values do not determine eligibility.

Beginning January 1, 2026, county workers apply the reinstated limit to new applications. Existing beneficiaries report assets at their next annual renewal on or after that date. A beneficiary whose renewal falls in November reports in November 2026.

The 2026 individual limit of 130,000 dollars and couple limit of 195,000 dollars apply to countable assets only. Exempt assets, listed in the next section, do not count toward the limit.

What counts as an asset, and what does not

Medi-Cal groups property into two categories: countable and exempt. Countable property adds to the reserve tested against the applicable limit. Exempt property is set aside and never tested.

Sources: Title 22 California Code of Regulations sections 50402(e), 50416, 50425, 50427, 50453, 50458, 50461, 50467, 50476, 50479, 50485; DHCS ACWDL 02-51; CANHR Non-MAGI Asset Limits fact sheet (Fact Sheet 55). Checked August 2026.

The home during life, and the federal equity cap

The primary residence is exempt for Long-Term Care Medi-Cal when any of these four conditions holds. The applicant lives there. The applicant's spouse lives there. A minor or disabled child of the applicant lives there. Or the applicant intends to return home.

An intent-to-return statement is filed on DHCS forms with the application. The statement does not require a specific timeline. It can be revoked or updated. The intent-to-return rule keeps the home exempt during a permanent nursing facility stay.

Federal law at 42 USC 1396p(f) caps the home equity a Long-Term Care Medi-Cal applicant may hold and still be eligible. The Centers for Medicare and Medicaid Services (CMS) updates the cap annually. States can choose to apply the minimum cap or the maximum cap. Verify the current-year figure with DHCS or CANHR before applying, because the cap adjusts each year.

Home equity above the applicable cap can disqualify an applicant from Long-Term Care Medi-Cal even when the residence is otherwise exempt. This rule applies only to Long-Term Care, not to community-based Medi-Cal programs like the Aged, Blind and Disabled Federal Poverty Level Program.

Spousal impoverishment: CSRA, MMMNA, and the community spouse

When one spouse enters a nursing facility on Medi-Cal and the other remains in the community, federal Medicaid law protects a portion of the couple's income and assets for the community spouse. The rules come from 42 USC 1396r-5, enacted as part of the Medicare Catastrophic Coverage Act of 1988. California implements them through Title 22 CCR 50490 and following.

Two protections matter most: the Community Spouse Resource Allowance (CSRA) and the Minimum Monthly Maintenance Needs Allowance (MMMNA).

Community Spouse Resource Allowance (CSRA)

The CSRA is the amount of countable resources the community spouse may keep in their own name at the point of Medi-Cal application for the institutionalized spouse. For 2026, the CSRA is 162,660 dollars under DHCS guidance implementing 42 USC 1396r-5(f)(2).

The CSRA is separate from the institutionalized spouse's own resource allowance. In 2026, the institutionalized spouse may keep up to 130,000 dollars in their own name. The combined couple protection under Spousal Impoverishment can therefore reach 292,660 dollars.

Assets that the community spouse acquires after Medi-Cal eligibility is set, and keeps in the community-spouse's own name only, are not counted against the institutionalized spouse (Title 22 CCR 50490.3(e); 42 USC 1396r-5(c)(4)).

Minimum Monthly Maintenance Needs Allowance (MMMNA)

The MMMNA protects a portion of the institutionalized spouse's income for the community spouse when the community spouse's own income falls below a threshold. It is applied through the Share of Cost calculation for the institutionalized spouse.

The MMMNA figure is set federally and adjusted annually by CMS. The 2025 MMMNA floor set by CMS was 2,555 dollars per month, with an excess-shelter allowance available up to a maximum of 3,948 dollars per month. Verify the 2026 figures with DHCS or CANHR before applying.

The MMMNA protects the community spouse's income, not the institutionalized spouse's. The institutionalized spouse's income above the Personal Needs Allowance is otherwise applied to the cost of care through the Share of Cost.

Income rules and Share of Cost

Long-Term Care Medi-Cal has no fixed income cap in California. Applicants whose income exceeds Medi-Cal's Maintenance Need Level pay a Share of Cost each month before Medi-Cal pays the balance of the facility charge.

Share of Cost is calculated as monthly income, minus the Personal Needs Allowance for a facility resident, minus health insurance premiums, minus a spousal allocation to the community spouse when the MMMNA rules apply. The remainder is what the resident owes the facility that month.

The Share of Cost mechanism keeps Medi-Cal open to residents with pensions, Social Security, and other retirement income who cannot cover the full facility bill privately. The Maintenance Need Level for a Long-Term Care resident is set by DHCS and is much lower than for a community-based applicant.

The Personal Needs Allowance in a facility

A Long-Term Care Medi-Cal resident keeps a Personal Needs Allowance (PNA) each month for personal expenses that Medi-Cal does not cover. These include haircuts, clothing, small toiletries, phone, and other personal items.

Under Welfare and Institutions Code section 14109.5, the California PNA for a Long-Term Care Medi-Cal resident is 35 dollars per month. Advocacy groups including CANHR have argued that the figure is inadequate and should be raised. Verify the current PNA with DHCS or CANHR before planning, because the figure is periodically revised by the Legislature.

The PNA is subtracted from monthly income before the Share of Cost is applied. So the resident retains the PNA out of pocket, and only income above the PNA (plus other deductions) flows to the facility.

The 30-month look-back returning in 2026

California's asset transfer look-back for Long-Term Care Medi-Cal was suspended along with the asset limit during the 2024 and 2025 elimination window. It returns for transfers made on or after January 1, 2026.

The California look-back is 30 months, not the federal 60 months used by most states. California kept the shorter window because DHCS has not yet promulgated regulations implementing the Deficit Reduction Act of 2005 change. The 30-month window is confirmed for the 2026 reinstatement by DHCS ACWDL 25-18 and MEDIL I25-23.

Transfers made between January 1, 2024 and December 31, 2025 are excluded from the look-back entirely. That gap is documented in the same DHCS letter series. The look-back only affects the applicant's eligibility for the Long-Term Care skilled-nursing benefit; community-based Medi-Cal programs remain available.

How the penalty period is computed

The transferred amount is divided by the Average Private Pay Rate (APPR). The 2025 APPR set by DHCS is 14,440 dollars per month. That divisor becomes the ineligibility period in months. California ignores partial months of ineligibility.

Transfers below one month's APPR create no penalty. Transfers of exempt property, judged under the rules in force at the time of the transfer, create no penalty. Transfers to a spouse, to a disabled child, or into certain trusts for a disabled person are also excluded under federal Medicaid law at 42 USC 1396p(c)(2).

Estate recovery after death (post-2017 rules)

Medi-Cal Estate Recovery is the state's post-death claim against a former beneficiary's estate for certain services Medi-Cal paid on the person's behalf. California materially narrowed recovery in 2016 through SB 833 (Chapter 30, Statutes of 2016). The narrowed rule applies to Medi-Cal beneficiaries who die on or after January 1, 2017. It is codified at Welfare and Institutions Code section 14009.5.

Four narrowings matter for a Long-Term Care Medi-Cal family. First, recovery reaches only the probate estate. Assets that pass outside probate, through a living trust, joint tenancy, community-property with right of survivorship, transfer-on-death deed, or beneficiary designation, stay outside recovery reach.

Second, recovery reaches only services federal law requires the state to recover. Those are nursing-facility services, home and community-based waiver services, and related hospital and prescription-drug services provided while the person was receiving those services (42 USC 1396p(b)(1)(B)).

Third, recovery is fully barred when the deceased beneficiary leaves certain survivors. Those survivors are a spouse or registered domestic partner (a lifetime bar for that survivor), a surviving child under 21, or a surviving child of any age who is blind or disabled under 42 USC 1382c.

Fourth, DHCS must waive the claim, subject to federal approval, when the estate is a homestead of modest value (WIC 14009.5(c)(2)). DHCS treats a homestead as modest value when its fair-market value at the date of death is 50 percent or less of the county's average home sale price for the same period.

How to apply for Long-Term Care Medi-Cal

An applicant, spouse, or authorized representative files at the county Medi-Cal office in the county where the applicant resides or is receiving care. Applications are also accepted online at BenefitsCal.com. A skilled nursing facility social worker or the resident's designated representative often files on the resident's behalf.

When Medi-Cal planning is not the right first step

Not every household benefits from restructuring assets for Medi-Cal eligibility. Several fact patterns make a Medi-Cal-driven move worse than doing nothing at all.

• The applicant is healthy and years away from any long-term care need. Locking assets into a plan for a scenario that may never arrive can create fees, tax friction, and control loss the family will regret if the care event never comes.
• The household has enough assets to cover care privately for several years. Private pay preserves flexibility on facility choice and location, and estate recovery does not attach to income used for care in a private-pay year.
• The applicant is already inside the 30-month look-back that returns in 2026. Last-minute transfers can create ineligibility periods. A licensed attorney should design any restructuring, not the family working from a checklist.
• The applicant's plan hinges on a promise of "asset protection" from a salesperson. Promises to make assets untouchable typically ignore county application, ongoing renewals, and the real reach of estate recovery.
• The applicant is relying on this article to file. Medi-Cal eligibility, look-back, Share of Cost, and estate recovery decisions turn on facts a general page cannot see.

An honest first step for most families is a paid consultation with a licensed California elder-law attorney. The attorney can confirm which household situation applies and whether any restructuring is worth the cost and complexity.

Common questions

What is the current Medi-Cal Long-Term Care asset limit in California?

Through December 31, 2025, there is no non-MAGI asset limit under DHCS ACWDL 23-25. From January 1, 2026, the limit returns at 130,000 dollars for one person, 195,000 dollars for a couple, and 65,000 dollars for each additional dependent household member under DHCS ACWDL 25-14. Income rules and Share of Cost apply throughout.

Did California really eliminate the Medi-Cal asset limit in 2024?

Yes. SB 184 (2022), Chapter 47, Statutes of 2022, amended Welfare and Institutions Code section 14005.62. The second phase took effect January 1, 2024 under DHCS ACWDL 23-25. The elimination applied to all non-MAGI Medi-Cal programs, including Long-Term Care and Aged, Blind and Disabled.

Will my house be counted for Medi-Cal Long-Term Care?

The primary residence is exempt during the applicant's life when the applicant, spouse, minor or disabled child lives there, or when the applicant files an intent-to-return statement. Federal law at 42 USC 1396p(f) caps the home equity a Long-Term Care applicant may hold and still qualify. The cap is set by CMS and adjusted annually. Verify the current figure with DHCS before applying.

How much can the community spouse keep?

Under Spousal Impoverishment rules (42 USC 1396r-5), the Community Spouse Resource Allowance (CSRA) for 2026 is 162,660 dollars, kept in the community-spouse's own name. The community spouse may also receive a portion of the institutionalized spouse's income when their own income is below the Minimum Monthly Maintenance Needs Allowance (MMMNA). The 2025 MMMNA floor set by CMS was 2,555 dollars per month, with a maximum of 3,948 dollars per month.

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

30 months for Long-Term Care skilled-nursing applications, not the federal 60 months. The look-back was suspended for transfers made in 2024 and 2025 under DHCS ACWDL 25-18 and MEDIL I25-23. It resumes for transfers made on or after January 1, 2026. The look-back only affects the applicant's eligibility for the SNF benefit, not community-based Medi-Cal.

Is my IRA counted against California Medi-Cal?

An IRA in the applicant's own name is treated as an unavailable resource under Title 22 CCR 50402(e) and DHCS ACWDL 02-51 when the applicant takes periodic payments of interest and principal. Required minimum distributions after age 73 satisfy that test on their own. A community spouse's IRA is totally exempt under Title 22 CCR 50458.

What is the Personal Needs Allowance in a nursing facility?

Under Welfare and Institutions Code section 14109.5, the California Personal Needs Allowance for a Long-Term Care Medi-Cal resident is 35 dollars per month. The PNA is subtracted from monthly income before the Share of Cost is applied. Advocacy groups including CANHR have argued the figure is inadequate; verify the current figure with DHCS before planning.

Can Medi-Cal take my house after I die?

Only when the home is in the deceased beneficiary's sole name at death and passes through probate, and only if no surviving spouse, registered domestic partner, or minor, blind, or disabled child exists. Homes held in a living trust, joint tenancy with right of survivorship, community-property-with-right-of-survivorship title, or transferred by a recorded transfer-on-death deed pass outside probate and outside recovery reach under WIC 14009.5.