Got an aging parent? Then listen up: if a Medi-Cal renewal notice shows up this fall, don’t toss it on the pile with the junk mail. California brought back its asset test for Medi-Cal long-term care coverage on January 1, 2026, and county caseworkers are now checking bank accounts, investments, and property at every renewal — not just when someone first applies. Families across Los Angeles County, Orange County, San Bernardino County, and Riverside County who thought this asset test was gone for good? They might be in for a rude surprise. Here’s what changed, who it hits, and what you need to do now — before a renewal notice turns into a coverage problem.
Background: What This Means
From 2022 through the end of 2025, California scrapped its asset limit for most Medi-Cal applicants. Part of a bigger push to make eligibility simpler. That ended with Assembly Bill 116, which brought the asset test back effective January 1, 2026. Here’s where things stand now: an individual applicant can keep up to $130,000 in countable assets. A couple can keep up to $195,000. Got more than two people in the household? Add $65,000 for each additional member. We’re giving you these numbers as of October 22, 2026 — but the California Department of Health Care Services (DHCS) can adjust them, so check the current figures before you make any decisions based on what’s written here. Want the actual text of AB 116? You can find it through the California Legislature at leginfo.legislature.ca.gov.
Countable assets usually mean bank accounts, stocks, bonds, second homes, or investment property. Your primary residence, one vehicle, and certain retirement accounts typically don’t count — but there are exceptions, and those exceptions matter. What’s really changed in late 2026 is how this gets enforced. Counties are now running the asset test at renewal time, not just when someone files a new application. So if your parent qualified for Medi-Cal back in 2024 or 2025 without anyone checking their assets, that coverage could disappear in 2026 if those countable assets now exceed the limit. Protect your rights — we handle the rest.
How This Affects LA and OC Families With Aging Parents
This change lands hardest on middle-class families in cities like West Covina, Los Angeles, Anaheim, San Bernardino, Riverside, Ontario, and Pomona, where home values and modest savings can push an elderly parent’s assets over the limit even though their income is low. Medi-Cal often pays for nursing home care and in-home support services that families cannot otherwise afford. Losing that coverage at renewal, simply because a parent’s savings or a second property exceed the threshold, can force a sudden search for other payment sources.
Adult children who serve as caregivers or hold joint accounts with a parent should also pay attention. Assets titled jointly may be counted in full against the Medi-Cal applicant, even if the adult child contributed most of the funds. Families who added a parent to a property title for convenience, or who never updated beneficiary designations, trust funding, or account titling after a parent’s health declined, are the ones most likely to face a problem at renewal rather than at initial application.
What You Should Do Now
Families should not wait for a renewal notice to act. Consider these steps:
1. Review all accounts and property titled in a parent’s name, including joint accounts, to understand what counts as an asset under the new $130,000 individual and $195,000 couple limits.
2. Check whether a revocable or irrevocable trust is properly funded. A trust that exists on paper but was never funded with the family home or investment accounts may not protect those assets from the Medi-Cal asset count.
3. Confirm that exempt assets, such as a primary residence or an exempt vehicle, are titled in a way that preserves their exempt status.
4. Ask about Medi-Cal planning tools, such as certain annuities or spend-down strategies, that may be appropriate well before a renewal deadline, since changes made after a county review has started may not be effective.
5. Gather renewal paperwork early and respond to county requests promptly, since a missed deadline can trigger a loss of coverage even if assets are within the limit.
Because trust funding and asset titling intersect directly with estate planning, many families find it useful to review these issues alongside a broader update to wills, trusts, and powers of attorney.
How TEZ Law Firm Can Help
TEZ Law Firm’s private client practice works with California families on trust funding, asset titling, and related estate planning documents that can affect Medi-Cal eligibility reviews. The firm can review how assets such as a home, bank accounts, or investment property are currently titled and discuss options consistent with California law and DHCS rules in effect as of October 22, 2026. Attorney JJ Zhang (California Bar #326666) serves as managing attorney, with offices in West Covina, City of Industry, and Newport Beach for California matters. You can learn more about the firm’s approach on the estate planning and trusts page.
For families whose planning also involves transferring or retitling real property, TEZ Law Firm’s real estate practice page describes related services that can work alongside trust and asset planning.
Frequently Asked Questions
What is the new Medi-Cal asset limit for 2026?
As of October 22, 2026, an individual Medi-Cal applicant can generally keep up to $130,000 in countable assets, and a couple can keep up to $195,000. Households with more than two people may add $65,000 for each additional member. These figures come from Assembly Bill 116 and may be updated by DHCS, so current confirmation is recommended.
Does the asset test apply to people already on Medi-Cal?
Yes. Counties are now applying the asset test at renewal, not only when someone first applies. A person who qualified without an asset check in 2024 or 2025 can still lose coverage in 2026 if their countable assets exceed the current limit.
Is a family home counted as an asset?
A primary residence is generally excluded from the countable asset total, but rules around equity limits, ownership structure, and trust titling can affect this exclusion. A review of how the property is titled is generally recommended before a renewal review.
Can a trust protect assets from the Medi-Cal asset count?
A properly drafted and properly funded trust may help with asset planning, but a trust that was never funded, meaning assets were never legally transferred into it, generally will not change how those assets are counted. Reviewing trust funding is a key step for families planning around the 2026 asset test.
What happens if a parent’s assets exceed the limit at renewal?
If countable assets exceed the limit at renewal, Medi-Cal coverage may be reduced or terminated unless the excess assets are spent down, transferred, or otherwise addressed consistent with program rules. Families generally have a limited window to respond once a county issues a renewal notice, so early planning is important.
California’s reinstated Medi-Cal asset limit changes how families in Los Angeles County, Orange County, San Bernardino County, and Riverside County should think about trust funding and asset titling for aging parents. If your family has a renewal coming up, or you simply want to review how your parent’s assets are titled, you can schedule a consultation with TEZ Law Firm through the firm’s contact page to discuss your situation.
This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Laws and agency practices change; contact TEZ Law Firm (West Covina, California) at 626-888-6856 or [email protected] about your situation. Prior results do not guarantee a similar outcome.