California Medi-Cal Planning for Nursing Home Care

Medi-Cal is California's Medicaid program, and it can pay for nursing home care. The rules changed on January 1, 2026, when California brought back an asset limit and a look-back period for long-term care. Here is what that means for your parent, and how LifeCare Senior Advocates helps California families plan.

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What Changed for Medi-Cal Nursing Home Care in 2026

For two years, California did not count assets for most Medi-Cal programs. That ended on January 1, 2026. The California Department of Health Care Services (DHCS) now counts assets again for people whose Medi-Cal is based on being 65 or older, having a disability, or living in a nursing home.

California's limit is much higher than the $2,000 limit many states use. DHCS sets the asset limit at $130,000 for one person, plus $65,000 for each additional household member, up to 10 people. Some married couples may qualify for higher limits under the spousal impoverishment rules.

The look-back period also returned for long-term care. Gifts made in 2026 and later can now delay Medi-Cal coverage for nursing home care.

LifeCare Senior Advocates helps families work through these rules as part of Medicaid planning for long-term care. Dave works with families in all 50 states, so your family does not need to live nearby.

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What Counts Toward the Medi-Cal Asset Limit

DHCS divides what your parent owns into assets that count and assets that do not. All assets should still be reported so the county can decide.

Counted: cash and bank accounts

Checking, savings, CDs, and cash, including accounts owned jointly with others.

Counted: investments

Stocks, bonds, and investment accounts, no matter where they are held.

Counted: second home or car

A home your parent owns but does not live in, and any vehicle beyond the first.

Not counted: the home

The home your parent lives in does not count toward the limit.

Not counted: one vehicle

One vehicle and household items such as furniture and clothing do not count.

Not counted: some retirement funds

Retirement funds like IRAs may not count when your parent receives the required minimum distribution or regular payments.

The Medi-Cal Look-Back Period for Long-Term Care

California's look-back is shorter than the five years many states use, but it is back. Here is how DHCS describes it.

Medi-Cal looks at transfers of counted assets made in the 30 months before your parent enters a facility
Only transfers made on or after January 1, 2026, are included
Transfers made from January 1, 2024, through December 31, 2025, are not included
Giving away counted assets for less than their value can delay long-term care coverage
Transfers to a spouse, or to a blind or disabled child, are allowed
Spending on your parent's own needs, such as medical bills, home repairs, or debts, is not a gift

Medi-Cal Estate Recovery in California

California limits estate recovery to what federal law requires. Under California law, for members who die on or after January 1, 2017:

Only the probate estate. Recovery is limited to property in the probate estate. Assets that pass outside probate, such as through a living trust, are not part of the claim.
Only required services. For members 55 and older, recovery covers the services federal law requires states to recover, such as nursing facility and home and community-based care.
No claim in some families. The state may not claim when there is a surviving spouse or registered domestic partner, a surviving child under 21, or a surviving child who is blind or disabled.
Hardship waivers. The state must waive its claim for substantial hardship, including when the estate is a homestead of modest value, meaning a home worth half or less of the county's average home price.

Members can also ask DHCS once a year for an estimate of what their estate may owe. Read more about how Medicaid estate recovery works in other states.

Planning for Medi-Cal Long-Term Care

With the 2026 changes, timing and records matter more than they did in 2024 and 2025. These are the steps Dave reviews with California families.

Check where assets stand today. Compare your parent's counted assets with the $130,000 limit and see what does not count. Learn more about what counts toward Medicaid asset limits.
Plan around the spouse at home. Ask about the spousal impoverishment rules, which may allow a higher limit for a married couple.
Think before giving anything away. Gifts made now fall within the 30-month look-back. See how the Medicaid look-back period works.
Spend down on real needs. DHCS lists paying medical bills, rent or a mortgage, home repairs, and debts as ways to reduce counted assets.
Keep good records. Bank statements and receipts make the county review easier.

Applications go through your parent's county Medi-Cal office. Dave helps families prepare before they apply and brings in the right professional when legal work is needed.

California Medi-Cal Questions

What is the Medi-Cal asset limit in 2026?

Starting January 1, 2026, DHCS set the asset limit at $130,000 for one person, plus $65,000 for each additional household member, up to 10 people. Some married couples may have higher limits under the spousal impoverishment rules.

Does Medi-Cal count the house?

The home your parent lives in does not count toward the asset limit. One vehicle, household items, and certain retirement funds in payout status also do not count.

Does Medi-Cal have a look-back period for nursing home care?

Yes. Medi-Cal looks at transfers of counted assets made in the 30 months before entering a facility. Only transfers made on or after January 1, 2026, are included.

Can Medi-Cal take my parent's house after they die?

California limits estate recovery to the probate estate. The state may not claim when there is a surviving spouse or registered domestic partner, a child under 21, or a blind or disabled child, and it must consider hardship waivers.

Can LifeCare Senior Advocates help families in California?

Yes. Dave Brandt works with families in all 50 states. He helps California families understand the Medi-Cal rules and plan before they apply.

Why Trust LifeCare Senior Advocates

Dave Brandt
Senior advocate and founder, LifeCare Senior Advocates

Dave Brandt brings more than 25 years in long-term care and works with families in all 50 states. He helps California families plan with Medi-Cal's own rules.

This page is general information, not legal advice. Figures are from DHCS and California law as of 2026 and can change. Dave Brandt is a licensed insurance agent. LifeCare Senior Advocates is not a law firm and does not provide legal or investment advice.