The Medi-Cal Asset Limit Is Back in 2026. What It Means for PACE.
Leslie Kaz, RHU (CA Lic #0B32530), September 2026
In short: Starting January 1, 2026, California again counts assets when deciding Medi-Cal eligibility for people age 65+, people with disabilities, and nursing-home residents. The limit is $130,000 for one person, plus $65,000 for each additional household member. Because Medi-Cal status largely decides what a family pays for PACE, this change matters for many families looking at PACE this year. Final eligibility is determined by the county, DHCS, and the PACE organization, not this website.
What changed
- Through 2023: In July 2022, California raised the limit to $130,000.
- 2024–2025: No asset limit for seniors.
- From Jan 1, 2026: The limit is back at $130,000 per person, plus $65,000 for each additional household member (up to 10 people). This change was enacted by AB 116 and implemented by DHCS.
New applications filed on or after January 1, 2026 must report assets. People already on Medi-Cal report assets at their first annual renewal after that date. (Source: DHCS Asset Limit FAQ; DHCS letter 25-14.)
What counts and what doesn't
Usually counted: bank and savings accounts; cash; a second vehicle or second home; many investment and retirement accounts.
Usually not counted: the home the person lives in; one vehicle; personal belongings.
The rules have details and exceptions, so always confirm with the county or a qualified advisor. (Source: DHCS Asset Limit FAQ.)
Married couples: If one spouse needs long-term care, spousal-impoverishment rules may let the at-home spouse keep more. In 2026 the Community Spouse Resource Allowance is $162,660. (Source: CANHR.)
Transfers: Transfers made on or after January 1, 2026 are subject to a look-back review. Transfers made during 2024–2025, when there was no limit, are not counted against renewals. Talk to an elder-law attorney before moving assets. (Sources: DHCS; Justice in Aging.)
Why this matters for PACE
What you pay for PACE depends on Medicare and Medi-Cal status:
- Medicare + Medi-Cal (no share of cost): often no monthly premium.
- Medi-Cal with a share of cost: you pay your share of cost to the PACE organization.
- Medicare only, over the Medi-Cal limits: you generally pay a monthly premium for the long-term-care portion, plus Part D.
(Sources: CalPACE; CMS Quick Facts, publication 11341.)
So if your parent's countable assets are over $130,000, they may not qualify for Medi-Cal right now. PACE may still be possible, but at a Medicare-only or private-pay cost. If they are under the limit, Medi-Cal can make PACE far more affordable.
What to do next
- Gather: recent bank and investment statements, the Medicare card, and any Medi-Cal letters (especially a share-of-cost notice).
- Check the ZIP: use the ZIP checker on our homepage to see whether a partner PACE program serves your loved one's area.
- Talk it through: request a callback with Leslie at no cost. He can explain how Medi-Cal status affects PACE costs and coordinate with the PACE organization, which often helps with the Medi-Cal application.
- Get free unbiased counseling: California HICAP, 1-800-434-0222. Legal and asset-planning questions belong with an elder-law attorney. This site does not give legal or tax advice.
Frequently asked questions
Does owning a house disqualify my mother from Medi-Cal?
Generally no. The home she lives in is not counted toward the asset limit.
My dad was approved in 2025 with no asset limit. Will he lose Medi-Cal?
His assets will be reviewed at his first renewal after January 1, 2026. If his countable assets are over the limit, coverage can end. DHCS mailed notices explaining this.
Can someone over the asset limit still join PACE?
Possibly. The Medi-Cal asset limit doesn't decide PACE clinical eligibility; it affects cost. Medicare-only and private-pay participants can enroll if they meet the other requirements.
Is the asset limit the same as the income limit?
No. Medi-Cal also has income rules; people over the income limit may qualify with a share of cost. DHCS updates income figures each year.
About the Author
Leslie Kaz, RHU is a licensed California insurance agent specializing in Medicare and PACE programs, operating through Syndicated Insurance Agency, LLC (CA License #0B32530). Leslie works as an independent advisor with three PACE partners — WelbeHealth, myPlace Health (SCAN), and InnovAge — and guides families through ZIP matching and enrollment coordination at no cost to the family.
Compensation. Guidance is at no cost to families. If enrollment occurs through this agency with a partner PACE organization, the agency may be compensated by that organization — not by the family.
Service area. Availability of PACE depends on ZIP code, program service area, and final eligibility as determined by the PACE organization and the State of California.
Final eligibility and cost are determined by the PACE organization and the State of California. This website does not guarantee $0 cost or enrollment.