California’s Medi-Cal Clawback Returns in 2026
For years, California’s Medi-Cal program did not count assets when determining eligibility for medical and custodial care—only income mattered. This meant patients could keep most of their assets while receiving care.
But that’s about to change.
Starting January 1, 2026, thanks to the new One Big Beautiful Bill (OBBB), California will join most other states by counting assets toward Medi-Cal eligibility. While patients and their spouses can still keep one home, a car, and a couple hundred thousand dollars, any assets above that threshold may be subject to a state “clawback” to reimburse Medi-Cal expenses.
If you’ve been looking for an additional reason to consider long-term care insurance, this is it. Protecting your assets has never been more important.
We’ve spent decades helping people understand the value of long-term care insurance. Whether you decide to purchase a policy or not, it’s crucial to understand the potential consequences of not being prepared for the clawback.
Don’t wait until it’s too late—let us help you navigate these changes and make informed decisions to safeguard your future.
Questions about California’s Medi-cal program? Schedule a call with Essential Plans of Insurance’s Jim Better today to understand your options: www.calendly.com/jimbetter. Find more resources in our blog.