California’s Important Medi-Cal Update: Protect Your Long-Term Care with Smart Planning Now

By Jay Greene, Esq. CPA –

Hey there, Californians! If you are starting to think about what’s ahead—retirement, healthcare costs, or maybe helping out your aging relatives—one thing you should know about in California is Medi-Cal. Not sure what it is? No problem, I’ve got you covered.

Medi-Cal is California’s version of Medicaid. It’s a program that helps people with lower incomes cover healthcare costs—like trips to the doctor, hospital stays, or even long-term care. It’s a big deal for anyone who needs support to afford medical expenses as they get older. But heads up: some changes are coming to Medi-Cal that could affect you or your loved ones, so let’s talk about what’s happening and how you can get ready.

What’s New With Medi-Cal?

As of January 1, 2026, California will bring back the “asset test” for Medi-Cal. This means they’ll check what you own—think savings, a second car, or an extra property—to see if you qualify. The limits are set at $130,000 for single folks and $195,000 for couples. Your main home and one car don’t count, but other stuff like cash or a vacation home does. If you’re over those limits, Medi-Cal might not be an option unless you plan ahead with an experienced estate planning firm.

Why Should You Care?

Picture this: you’re thinking about your future or maybe your loved one’s needs—like care at home or in a nursing facility. Those costs can add up fast, and Medi-Cal is often the safety net people rely on. With the asset test back in play, having a bit too much saved up could mean you’d need to spend it down before getting help. That’s not a great spot to be in if you’ve been working hard to build some security that you would like to supplement your needs. The silver lining? You can take steps now to protect your long-term care needs without losing everything you’ve saved.

How Estate Planning Can Save the Day

Estate planning isn’t just for millionaires; it’s for anyone who wants to keep their finances and family secure. With Medi-Cal’s changes, it could be a game-changer to start planning now. One option is setting up an Asset Protection trust. Think of it as a safe box for your money or property, managed by someone you pick (called a trustee). If it’s done right, Medi-Cal might not count what’s in the trust, letting you qualify while holding onto your assets.

You could also spend money on things that don’t count toward the limit, like home improvements, or carefully pass some assets to family.  It is important to find someone with experience when considering a stacked gifting plan. Just watch out, because there are rules about giving stuff away, and you don’t want to trip over them. We’ll talk more about stacked gifting in 2026 in our next article.

Get Some Professional Help

This can feel a bit overwhelming, right? That’s where estate planning attorneys, especially elder attorneys, come in. They’re pros who know the Medi-Cal ropes and can tailor a plan for you—whether it’s setting up a trust or figuring out other smart moves. And if you go with an asset protection trust, you might want a trustee to manage it—someone dependable, who can make sure you don’t have to worry about the stress as you age.

Take Action Now

These Medi-Cal changes are on the way, but you’ve got time to prepare. Think about where you stand. Do you have savings or property that might push you over the limit? Are you concerned about long-term care and healthcare costs down the line? If so, scheduling a consultation with an estate planning attorney now could be your next step toward protecting your future.

Planning now means less worry later. With a little effort, you can keep your long-term care costs and healthcare covered. This will make sure that your finances remain intact.

Statements in Compliance with California Rules of Professional Conduct

This article is for educational purposes only and does not constitute legal advice. Consult an estate planning attorney for personalized guidance.

Jay Greene, Esq., CPA, is the founder of Greene Law Firm, P.C., in San Francisco, dedicated to helping LGBTQ+ individuals and families secure their future. For more information, visit:
https://www.greenelawfirm.com/

Trust Essentials
Published on August 28, 2025