California has officially signed its 2026-2027 state budget, and there is a major change coming to Medi-Cal that families need to prepare for.
Starting in July 2027, the state is bringing back a much stricter asset test for seniors and people with disabilities to qualify for Medi-Cal. Under the new rules, an individual can only have up to $21,000 in countable assets (or $31,000 for a couple) to remain eligible. This is a significant drop from the current limits of $130,000 for an individual.
On a positive note, the budget did scrap proposed cuts to the In-Home Supportive Services (IHSS) program and added $2.4 billion in special education funding. However, the new asset limit means many families will need to look closely at special needs trusts or ABLE accounts over the next year to protect their loved one’s eligibility.
You can read a full breakdown of the final budget and what it means for healthcare in this summary from CalMatters.