Could Medi-Cal Changes Put Your Future at Risk?

For many Californians, Medi-Cal has been a lifeline—helping cover the staggering costs of long-term care when savings and insurance fall short. But the One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has brought major changes that could put that safety net out of reach for more families than ever before.

Stricter Eligibility Rules Ahead

The OBBBA slashed federal funding for Medicaid, which means California is tightening its Medi-Cal program to manage budget shortfalls. Among the biggest changes:

• Asset limits are back. Depending on your situation, you may only be allowed to keep between $2,000 and $130,000 in countable assets.
  
• Second properties may disqualify you. Even modest real estate holdings beyond your primary residence could push you over the limit.
  
• Savings and investments are at risk. Brokerage accounts, IRAs, annuities, and similar assets could now block eligibility.
  

Who’s Most Affected?

• Seniors who have accumulated even moderate savings.
  
• Families who own more than one property.
  
• Adults under 65 who receive Medicaid and may now face work requirements.
  

For these groups, what once seemed like a sure path to long-term care coverage may no longer be available.

Why Waiting Can Be Dangerous

The biggest risk is waiting until a health crisis hits. By the time care is needed, it may be too late to reposition assets without penalties. Families could find themselves paying out of pocket for nursing homes or assisted living, draining savings meant to support spouses or leave a legacy for children.

How Planning Protects You

The good news is that proactive planning can shield assets while preserving access to care. Options may include:

• Restructuring or transferring certain assets.
  
• Using trusts to protect savings or real estate.
  
• Coordinating benefits with veterans’ or long-term care planning.
  

Every family’s situation is unique, but the common theme is clear: the earlier you act, the more options you’ll have.

The Takeaway

The OBBBA’s changes have redrawn the Medi-Cal map. Even if you once thought you’d qualify, the new rules may say otherwise.

Don’t wait for a crisis to force rushed, stressful decisions. Meet with an experienced estate planning and elder law attorney now to explore strategies that protect your assets and secure access to the care you or your loved ones may one day need.