A home, a car and savings are not all treated the same. Here’s how to understand the rules and get help with your case in Los Angeles County.
For an older parent living on a fixed income, savings can mean being able to replace a broken refrigerator or cover an unexpected bill. Learning that Medi-Cal counts assets can make even a modest cushion feel uncertain.
But having savings, a car or a home does not automatically disqualify someone. What matters is which Medi-Cal rules apply and how the county counts what they own.
California restored asset tests for many Medi-Cal programs in January 2026. Its enacted budget calls for lower limits in 2027, raising questions for older adults, people with disabilities and families helping them keep coverage.
Before making any financial decisions, start with the distinction that can get lost in those headlines: the asset limit does not include everything you own.
First, find out which rules apply
Many people qualify for Medi-Cal through income-based rules known as MAGI, short for modified adjusted gross income. Those rules do not impose an asset test.
Other programs, known as non-MAGI, use different eligibility rules, including rules related to age, disability or long-term care. The state’s instructions to counties identify the programs affected by the reinstated test, including Medicare Savings Programs and several disability-related programs.
You do not need to untangle those abbreviations on your own. Ask your county worker which program you have and whether it counts assets.
Income and assets are separate parts of the review. Income is money you receive. Assets are resources you own. Meeting the asset limit does not automatically mean you meet the income rules.
What counts, and what usually does not?
Los Angeles County’s asset guidance gives these common examples:
- Cash and bank accounts: Generally counted, including ordinary checking and savings accounts.
- The home where you live: Generally excluded.
- Your main vehicle: Generally excluded.
- Additional homes and vehicles: Generally countable, subject to exemptions and valuation rules.
- Furniture, clothing and household belongings: Excluded.
- Retirement funds: Excluded under the county’s general guidance when you receive regular payments.
Those examples help explain the rules, but they cannot tell you the result of an individual case. Owning a second car, for example, does not automatically make someone ineligible. The amount that counts toward the limit still matters.
Retirement accounts deserve a closer look. Ask how your particular account and its payments are treated. Do not assume every IRA or 401(k) is excluded.
A shared bank account can also require more explanation. The state’s eligibility procedures manual addresses access to joint-account money and evidence of ownership. Simply dividing the balance by the number of names on the account may not give you the right answer.
The home question can become more complicated when someone enters a nursing facility. DHCS identifies protections involving plans to return home or a spouse, partner or dependent relative living there.
A home being excluded for eligibility also does not answer what happens after death. Separate estate-recovery rules govern repayment for certain services from assets subject to probate, with exemptions and limitations.
What is changing in 2027?
For affected programs, the current standard limit is $130,000 for one person and $195,000 for two. The county’s definition of a household does not necessarily include everyone under the same roof. Some couples qualify for additional protections.
The Legislative Analyst’s Office confirms the enacted reduction to $21,000 for one person and $31,000 for two, beginning July 2027.
DHCS’s September 29 implementation update says the change is scheduled no earlier than July 1, 2027, depends on system readiness and will not take effect until final policy is published.
That date alone does not tell you when your own coverage could change. Some eligibility groups also have separate 2027 instructions. Confirm your program and follow your county notices.
For families relying on a caregiver, changes to Medi-Cal eligibility can also raise questions about home-care assistance.
Where Los Angeles families can get help
Call LA County DPSS at 866-613-3777. Free interpretation and translation are available.
Have your county notice and relevant account, ownership and retirement-payment records nearby. Ask: What did you count? What did you exclude? What documents do you still need?
Before giving away savings, selling property or changing ownership, get advice about your specific situation. Transfers can affect long-term-care coverage.
If coverage is denied or stopped, read the Notice of Action right away. DHCS’s hearing guidance generally allows 90 days to request a hearing, but keeping benefits during review can require an earlier request.
You deserve to understand how the county reached its decision. Get that explanation before deciding what to do with money or property you may depend on.
