California to slash asset limit for seniors and disabled, risking Medi-Cal loss
California will lower the savings threshold for low-income seniors and people with disabilities to $21,000 in July 2027, endangering their Medi-Cal eligibility.
Beginning in July 2027, California will enforce a $21,000 asset cap for seniors and people with disabilities to qualify for Medi-Cal, reversing a 2024 elimination of asset limits. The rule permits a primary residence and one vehicle but bars additional homes, cars, savings, certain retirement accounts, life insurance and burial plots. Advocates such as Julia Feinberg and Elizabette Guéçamburu say the limits threaten essential caregiving, wheelchair-accessible vehicles and home modifications, forcing some to surrender assets or place funds in special-needs trusts.
Governor Gavin Newsom originally removed the limits, but a $12 billion deficit led the Legislature to compromise at $130,000 before cutting further. Republican candidate Steve Hilton opposes the limits, while Democratic front-runner Xavier Becerra has offered no specific plan. Legal Aid Society attorney Camille Nguyen notes many affected individuals rely solely on cash savings for retirement.
