Starting in July 2027, some older Californians and people with disabilities will face much stricter limits on savings and other assets. The change could put their health coverage at risk and raise new questions about the help they receive at home.
For someone living on a fixed income, having money saved can bring a little peace of mind. It might cover an unexpected medical bill, a broken refrigerator or a few months of rent when something goes wrong.
But starting July 1, 2027, some California seniors could find that having those savings puts their Medi-Cal coverage at risk.
Under the new rules, the amount a single person can have in countable assets will drop from $130,000 to $21,000. For two people, the standard limit will fall from $195,000 to $31,000.
The change affects certain Medi-Cal beneficiaries, including older adults and people with disabilities.
And for families who depend on someone coming into their home to help an older parent or relative, it raises another question:
If someone loses Medi-Cal because they have too much in savings, could they also lose the help they receive at home?
California eliminated Medi-Cal asset limits in 2024. That allowed eligible residents to keep their health coverage without worrying that their savings would disqualify them.
But the state brought back asset limits in January 2026. Now, those limits are scheduled to become much stricter in July 2027.
According to the California Department of Health Care Services, the rules apply to certain groups, including people age 65 and older, people with disabilities and people receiving long-term care.
Not every senior receiving Medi-Cal will be affected.
The state does not count certain property, including a person’s primary home, primary vehicle, household belongings and some retirement accounts. Special protections may also apply to married couples when one spouse needs long-term care.
Consider a 70-year-old Los Angeles resident with $35,000 in countable savings.
That person could qualify under today’s $130,000 asset limit but exceed the new $21,000 limit next July.
Whether they actually lose coverage would depend on their full financial situation and the protections available to them.
Could losing Medi-Cal also mean losing home care?
For many older adults, health coverage is only part of what helps them live independently.
California’s In-Home Supportive Services program, known as IHSS, helps eligible people with everyday activities such as bathing, preparing meals, cleaning and getting to medical appointments.
For some families, that help makes it possible for an older parent to remain at home instead of moving into a care facility.
The state’s Legislative Analyst’s Office estimates that lowering the Medi-Cal asset limit will reduce state IHSS spending by approximately $112.9 million in the 2027–28 fiscal year.
That tells us the state expects the change to affect home-care spending. But it does not tell us exactly how many people might lose services.
And losing Medi-Cal does not automatically mean losing IHSS.
Los Angeles County has a separate program called IHSS-Residual. Under certain circumstances, it allows people who lose Medi-Cal to be considered for continued home-care assistance.
But that protection is not automatic. The county’s published rules do not clearly explain what will happen in every case involving the new savings limit.
For families who depend on a caregiver, that uncertainty matters.
How many Los Angeles seniors could be affected?
We don’t know yet.
State health officials have previously estimated that bringing back Medi-Cal asset limits could cause tens of thousands of Californians to lose coverage over time.
But those earlier estimates do not tell us how many people will lose coverage under the final $21,000 limit.
And Los Angeles County has not publicly established how many affected beneficiaries have countable assets above that amount.
California has required its health department to publish quarterly figures showing how many people lose Medi-Cal because of the asset limit.
Those reports should help clarify the impact, including whether large numbers of older residents are losing coverage.
Not every proposed reduction to home-care services became law.
California lawmakers rejected a proposal that would have automatically ended IHSS for certain people when their Medi-Cal coverage stopped. They also rejected a proposal to eliminate a program that provides backup caregivers.
Overall funding for IHSS is increasing, even as the state expects to spend less because of the stricter asset limit.
California is not eliminating home care for seniors. But some people may find it harder to qualify for the health coverage and assistance they depend on.
These changes are happening while many older residents are already dealing with high housing costs and challenges getting healthcare.
Families know how difficult it can be when a medical service changes or disappears. Those concerns have also surfaced in Los Angeles patients’ experiences with changes to Medi-Cal provider agreements.
And Los Angeles’ continuing homelessness crisis shows how difficult it can be to maintain stable housing, particularly for people with limited incomes.
There is no evidence that the future savings-limit reduction has already increased senior homelessness.
What seniors and families should do now
The stricter limits will not take effect until July 2027, giving families time to understand what is changing.
Start by finding out which savings and property Medi-Cal counts and which are exempt. The state’s official explanation of the asset rules can help.
If you already receive Medi-Cal, watch for renewal notices and respond to requests for information on time.
If you or a family member also receives IHSS, ask your county worker what could happen to those services if Medi-Cal eligibility changes. Find out whether another Medi-Cal eligibility category or IHSS-Residual assistance may be available.
And be careful before giving away savings or transferring property to qualify. Some transfers can create penalties if a person later needs nursing-home care.
Getting qualified benefits or legal advice before making financial changes can help avoid costly mistakes.
Los Angeles residents can contact the Department of Public Social Services for questions about Medi-Cal eligibility.
For older Californians who have spent years putting money aside for emergencies, the new rules create a difficult concern: savings meant to provide security could now put important health benefits at risk.
Understanding those rules early could help families protect both their healthcare and their ability to remain at home.
