California's Medicaid program, Medi-Cal, is administered by the Department of Health Care Services. Important 2026 change: California reinstated the Medi-Cal asset test on January 1, 2026, so a parent applying for nursing-home Medi-Cal must again meet an asset limit — $130,000 for one person through mid-2027, per DHCS, dropping sharply in 2027. For income, California uses a share-of-cost model, not an income cap: a nursing-home resident keeps a small personal needs allowance and applies the rest toward care.
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California Medicaid Nursing Home Eligibility: A Caregiver's Guide (2026)
By Chuck Brodsky, Co-Founder, MediNav — Updated July 2026 — 7 min read
Quick answer
If you looked into Medi-Cal a year or two ago and were told California had "no asset test," that guidance is now out of date. The rules changed at the start of 2026, and they are set to change again in 2027, so getting the current picture matters before your parent applies.
The 2026 asset test — reinstated
From 2024 through 2025, California had eliminated the Medi-Cal asset test entirely. As of January 1, 2026, DHCS reinstated it: Medi-Cal again counts assets, and the limit is $130,000 for one person (plus more for additional household members) through June 30, 2027. DHCS has announced the limit drops to $21,000 for one person on July 1, 2027. Because these numbers are mid-transition, confirm the current figure on the DHCS asset-limit page before applying.
How income works: share of cost
California does not use a hard income cap for nursing-home Medi-Cal. Instead it applies a share of cost: a resident in a nursing facility keeps a personal needs allowance — $35.00 a month — and contributes the remaining income toward the cost of care, with Medi-Cal paying the balance. A parent is not disqualified simply for having income above a threshold, which distinguishes California from income-cap states.
Spousal protections
When one spouse enters a nursing home, California protects the at-home spouse. Under the "name on the check" rule, the community spouse keeps income received in their own name, and if their income is low, income can be allocated from the institutionalized spouse up to the maintenance allowance. The federal community-spouse resource maximum applies as well. These rules keep the healthy spouse from being impoverished by the other's care.
Programs and where to apply
Beyond nursing-facility Medi-Cal, California offers the Assisted Living Waiver, a Home and Community-Based Services waiver that can fund assisted-living services as an alternative to a nursing home for eligible residents. Applications are handled through the county, and the DHCS website explains eligibility. For advocacy in a facility, the California Long-Term Care Ombudsman CRISISline is 1-800-231-4024.
Transfer penalties, in transition
California's transfer-penalty framework has been unsettled through the asset-test changes. The statewide average private-pay rate used as the transfer divisor is $13,656 a month, per DHCS (a 2025 figure; no 2026 figure has replaced it). During the 2024 and 2025 asset-test elimination, asset transfers were not penalized in the traditional way; with the asset test reinstated in 2026, confirm the current transfer and look-back rules directly with DHCS, since they are still being updated.
What a caregiver should do
Confirm the current asset limit with DHCS, because it is changing — $130,000 in 2026, far lower in 2027. Gather financial records, understand that income works as a share of cost rather than a cutoff, and ask about the Assisted Living Waiver if a nursing home is not the goal. Related national rules are covered in the Medicaid look-back period guide.
When to call MediNav
- Free: Ask a specific question — tell us your parent's California situation and get a straight answer on Medi-Cal nursing-home eligibility.
- Free: Run the coverage check — in about two minutes, see what a parent is likely eligible for with 2026 figures for your state.
- Paid ($9–$19/mo): MediNav Watch and Watch+ re-check the figures as they change each year and remind you before deadlines, so nothing lapses unnoticed.
Related guides
- Medicaid Look-Back Period — how transfers are reviewed
- Medicaid Estate Recovery — recovery from the estate after death
- Community Spouse Resource Allowance — what a healthy spouse keeps
- Is My Parent Dual-Eligible? — Medicare + Medicaid together
Frequently asked questions
What if I was told California has no asset limit?
That was true in 2024 and 2025 but is no longer accurate. California reinstated the Medi-Cal asset test on January 1, 2026. For 2026 the limit is $130,000 for one person, and DHCS has announced it drops to $21,000 on July 1, 2027. Confirm the current figure with DHCS before applying.
Does California use an income cap for nursing-home Medi-Cal?
No. California uses a share-of-cost model. A nursing-home resident keeps a $35.00 monthly personal needs allowance and applies remaining income toward care, with Medi-Cal covering the rest. A parent is not disqualified for having income over a set threshold, unlike in income-cap states.
Who runs Medi-Cal?
The California Department of Health Care Services (DHCS) administers Medi-Cal statewide, while counties handle applications and eligibility determinations. The DHCS website is the authoritative source for current limits and program rules, which is important now because the asset limit is mid-transition.
Can Medi-Cal help pay for assisted living?
Possibly, through the Assisted Living Waiver, a Home and Community-Based Services waiver that funds assisted-living services for eligible residents as an alternative to a nursing facility. It does not pay assisted-living room and board like a private payer; ask DHCS or the county about waiver slots and eligibility.
What protects the at-home spouse?
California's spousal rules let the community spouse keep income in their own name under the "name on the check" rule, allocate income from the institutionalized spouse if needed, and retain resources up to the federal community-spouse maximum. These protections prevent the healthy spouse from being left without enough to live on.
Where can I get help with a nursing-home problem?
The California Long-Term Care Ombudsman program advocates for residents of nursing homes and assisted living. Its statewide CRISISline is 1-800-231-4024. For eligibility questions, contact your county Medi-Cal office or review the DHCS website for the current rules.
Sources: California DHCS — Medi-Cal asset limit FAQs, DHCS — Long-Term Care / Medi-Cal information, California Long-Term Care Ombudsman. Last verified July 2026.