Medi‑Cal Asset Limits Are Returning — What Families Need to Know by 2026

If your child receives Medi‑Cal benefits—especially through a waiver program like the HCBS-DD waiver—it’s important to understand upcoming changes to California’s Medi‑Cal eligibility rules.

What’s Changing?

Starting January 1, 2026, California will reinstate the Medi‑Cal asset limit for some individuals, including those with disabilities. While the state previously eliminated the asset test in 2024 for most programs, this sunset provision means families will need to prepare for asset reporting to resume.

What Counts as an Asset?

Assets include things like:

• Bank accounts (savings/checking)

• Stocks and bonds

• Cash on hand

• A second vehicle

• Real property (other than your home)

Assets not counted typically include your primary residence, one vehicle, household items, personal belongings, and retirement accounts (if in distribution).

What About Children on Waivers?

Children receiving Medi‑Cal through a waiver like Institutional Deeming (HCBS-DD) are evaluated only on their own assets and income—not their parents’. This means:

• Parental income and savings do not count.

• The child must stay within asset limits themselves (currently $2,000 for an individual, unless this is updated in 2026).

  
  

What Should Families Do Now?

While you may not need to take action yet, 2025 is the perfect time to review your child’s financial standing and benefits plan. Special needs trusts, ABLE accounts, and careful planning can protect your child’s eligibility and ensure continuity of care.