California reinstated the Medi-Cal asset limit and 30-month look-back on January 1, 2026 — and families who easily qualified for years are now getting denied at redetermination. Here’s why, and how to get back under the limit.
Why You Might No Longer Qualify
If you or a loved one just received a Medi-Cal redetermination notice saying you no longer qualify, you’re not imagining it — and you’re not alone. California reinstated asset limits and a 30-month look-back period for long-term care Medi-Cal starting January 1, 2026, and families who qualified easily for the past few years are now getting denial letters during their annual redetermination.
This is one of the most stressful moments a family can face: a parent is already receiving care, the bills haven’t stopped, and suddenly the coverage that was paying for it is at risk. The good news is that a denial almost always has a path back to eligibility — it just means your plan needs to be updated for the new rules. Here’s what’s actually happening, and how to get back under the limits.
Between 2022 and the end of 2025, California eliminated the asset test for Medi-Cal eligibility entirely. Anyone who applied or was redetermined during that window may not have needed to think about countable assets at all. That changed on January 1, 2026, when the state reinstated asset limits and the look-back period for nursing facility Medi-Cal.
If your redetermination is being processed under the new rules, a few things may now apply that didn’t before:
- An asset limit is back in place — $130,000 for an individual, $195,000 for a couple
- Spousal protections have specific thresholds again, including the Community Spouse Resource Allowance (CSRA) of $162,660 and the Minimum Monthly Maintenance Needs Allowance (MMMNA) of $4,067/month
- A 30-month look-back period now applies to nursing facility Medi-Cal for asset transfers made on or after January 1, 2026 — so gifts or transfers made after that date can trigger a penalty period even if they were never an issue before
For a full breakdown of exactly what changed and why, see our guide on the 2026 Medi-Cal eligibility changes.
What to Do the Moment You Get a Denial Notice
1. Read the notice and find the exact numbers.
The notice will show what the county counted as your assets or income and by how much you’re over. Knowing the specific gap — not just “denied” — is the starting point for closing it.
2. Don’t panic-transfer assets.
A common — and costly — mistake is trying to quickly give away or move assets to get back under the limit. Because of the 30-month look-back, an unplanned transfer made now can create a penalty period at exactly the wrong time. Any transfer needs to be structured correctly, not rushed.
⚠️ Important: Transfers made on or after January 1, 2026 are subject to the 30-month look-back for nursing facility Medi-Cal. An uncompensated transfer made to quickly get under the limit can create a penalty period instead of solving the problem.
3. Check for miscounted assets first.
Redetermination errors — an exempt asset counted as countable, a spousal allowance applied incorrectly, an asset that shouldn’t be in the calculation at all — are common. Sometimes the fastest way back to eligibility is simply correcting the record, not changing your finances.
4. Build a plan to get under the limit the right way.
If the numbers are accurate and you’re genuinely over, the path forward is a spend-down or asset restructuring plan tailored to the new $130,000 individual / $195,000 couple limits — done in a way that doesn’t trigger the look-back penalty and doesn’t jeopardize a spouse’s protections under the CSRA and MMMNA.
5. Move quickly, but don’t guess.
The sooner a plan is in place, the sooner eligibility is restored and coverage resumes. This is not something to solve with a quick internet search or a rushed asset transfer — the look-back rules mean mistakes here are expensive and hard to undo.
Getting Back Under the Limit Is the Goal
A redetermination denial under the new rules is not the same as being permanently disqualified — it means the plan that worked under the old no-asset-test rules needs to be rebuilt for 2026. Elder Care Law California focuses on exactly this: helping families reduce countable assets the right way so they requalify and coverage continues. Every family’s numbers are different, and the right plan depends on the specific assets, income, and care situation involved.
If your family is dealing with a redetermination denial, the details matter and the clock is often running. Our Medi-Cal planning attorney team can review your denial notice, identify whether it’s a correctable error or a genuine gap, and build a plan to get you back under the limit as quickly as possible.
Frequently Asked Questions
A redetermination is the annual (or periodic) review California conducts to confirm you still meet Medi-Cal’s income, asset, and other eligibility rules. Redeterminations processed after January 1, 2026 apply the reinstated asset limits and look-back period, which can change the outcome even if nothing in your situation changed.
The most common path is a spend-down or asset restructuring plan — converting countable assets into exempt ones, addressing debt, or using planning tools designed around the new $130,000 individual / $195,000 couple limits. The right combination depends on your total assets, marital status, and how large the gap is, which is why a personalized review matters more than general rules of thumb.
Yes. Because California’s asset limit and 30-month look-back period were reinstated on January 1, 2026, someone who qualified under the no-asset-test rules in effect from 2022–2025 can be found over the limit at their next redetermination, even without any change in their actual finances.
Not necessarily, and it can backfire. Transfers made on or after January 1, 2026 are subject to the 30-month look-back for nursing facility Medi-Cal, meaning an uncompensated transfer can create a penalty period. Any transfer should be reviewed by an elder law attorney before it’s made.
It depends on how large the gap is between your countable assets and the limit, and how much of that gap can be closed through spend-down versus longer-term planning. Acting quickly matters, since coverage stays interrupted until the plan is in place — but the plan still needs to be done correctly to avoid the 30-month look-back penalty.
In most cases, yes. Strategies such as spend-down planning, converting countable assets into exempt ones, or restructuring how assets are held can bring a family back under the $130,000 individual / $195,000 couple limits. The right approach depends on the specific assets involved and how much time is available.
Page last reviewed: July 2026 • Information reflects current California DHCS guidelines • Elder Care Law California • (866) 822-7211
Lead attorney: Laura Butkute, Esq. • California State Bar #262871 • Licensed since 2009 • Firm founded 2010 • 475 Washington Blvd, Suite 200, Marina Del Rey, CA 90292
This article provides general information about California Medi-Cal rules and is not a substitute for individualized legal advice. Contact Elder Care Law California for guidance specific to your situation.