California’s Medi-Cal Asset Limit Is Lowering in 2027: What Families Need to Know About the 2027 Medi-Cal Rules.

Many families assume that Medicare will pay if a parent or spouse needs to live in a skilled nursing facility. Unfortunately, Medicare generally covers skilled nursing care only for a limited time and only when specific requirements are met. 

In 2026, Medicare covers up to 100 days per benefit period, with a daily copayment beginning on day 21. It does not cover most ongoing custodial or long-term nursing home care.

That gap can be financially devastating. According to CareScout’s 2025 Cost of Care Survey, the median cost of a semi-private nursing home room in California is approximately $12,167 per month, or $146,000 per year. A private room has a median cost of approximately $15,178 per month, or more than $182,000 per year. Even a relatively short stay can consume a lifetime of savings.

How Medi-Cal Can Help With Skilled Nursing Costs

Medi-Cal is California’s Medicaid program. For a person who meets the medical and financial eligibility requirements, Medi-Cal can pay for long-term care in a participating skilled nursing facility. The resident may still have to contribute a portion of monthly income as a share of cost (i.e. co-pay), but Medi-Cal can cover the substantial balance that would otherwise be paid privately.

Medi-Cal is California’s Medicaid program. For a person who meets the medical and financial eligibility requirements, Medi-Cal can pay for long-term care in a participating skilled nursing facility. The resident may still have to contribute a portion of monthly income as a share of cost (i.e. co-pay), but Medi-Cal can cover the substantial balance that would otherwise be paid privately.

The Medi-Cal Asset Limits in 2026 and 2027

2027 Medi-Cal Rules are changing. California currently applies an asset test to Medi-Cal programs used by many people who are age 65 or older, have a disability, or need nursing-home care.

Through June 30, 2027, the countable-asset limits are:

• Single Person: $130,000

• Married Couple: $195,000

Beginning July 1, 2027, the limits will be substantially lower:

• Single Person: $21,000

• Married Couple: $31,000

Special, higher protections may apply when one spouse needs long-term care and the other spouse remains at home.

Not every asset counts toward the limit. Countable assets generally include cash, bank and investment accounts, second homes, and additional vehicles. A principal residence, one vehicle, household belongings, and certain retirement accounts receiving regular payments generally do not count. The rules are technical, however, and an asset that is exempt for eligibility purposes may still require planning for management, taxes, or Medi-Cal estate recovery.

Medi-Cal Asset Protection Trusts

The 2027 reduction makes advance planning especially important. When created and funded early enough, a properly designed irrevocable Medi-Cal Asset Protection Trust may protect certain assets and help a person qualify for Medi-Cal without first exhausting everything the family has accumulated.

A standard revocable living trust does not make assets unavailable for Medi-Cal eligibility. The trust must be carefully drafted, funded, and coordinated with the applicant’s income, exempt assets, tax planning, and estate-recovery exposure.

Timing also matters. California’s long-term-care Medi-Cal rules include a 30-month look-back for certain transfers. Under current guidance, transfers made before January 1, 2026, are not counted, but transfers made on or after that date may delay nursing-facility coverage if assets are transferred for less than fair market value. Families should not give away property or move it into a trust without first receiving advice about the eligibility and transfer consequences. We can guide you through the transfer process to reduce or eliminate any Medi-Cal ineligibility period.

Plan Before a Crisis

California Estate Planning Services helps families plan before long-term care is needed and assists when a loved one is already facing placement in a skilled nursing facility. We can evaluate which assets count, identify available exemptions and spousal protections, recommend lawful spend-down or transfer strategies, prepare a Medi-Cal Asset Protection Trust when appropriate, and assist with the Medi-Cal application process.

To schedule a consultation, call (714) 584-5009.

This blog post provides general information and is not legal advice. Medi-Cal eligibility depends on the applicant’s individual circumstances, and program rules may change.