193: URGENT: California Medi-Cal Asset Limits Return In 2026 - How To Prepare NOW Absolute Trust Talk podcast

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193: URGENT: California Medi-Cal Asset Limits Return in 2026 - How to Prepare NOW

14h ago 7:21

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California is quietly bringing back asset limits for Medi-Cal long-term care coverage in 2026, and current recipients could be in for a devastating surprise. Here's what's happening: California eliminated asset limits for elderly and disabled Medi-Cal recipients in 2024, but those limits are returning in 2026. If you currently receive long-term care Medi-Cal benefits, when you submit your annual eligibility report next year, you could lose your coverage if your assets exceed the new limits.

In this critical episode, estate planning attorney Kirsten Howe explains the $130,000 asset limit returning for single individuals, why 2025 is your last opportunity to transfer assets without penalties, and the difference between regular Medi-Cal and long-term care Medi-Cal coverage. She also covers exactly which assets will count against you, which are exempt, and essential planning strategies to protect your benefits before the deadline.

Time-stamped Show Notes:

0:00 Introduction

0:02 Federal vs. state changes: distinguishing between well-publicized federal Medicaid cuts and California's hidden asset limit reversal

1:56 MAGI Medi-Cal breakdown - how Obamacare's expanded coverage works for healthy, low-income individuals

2:17 The crucial distinction: long-term care Medi-Cal covers far more than basic health insurance, serving elderly and disabled populations

3:16 Planning becomes essential again - why future Medi-Cal eligibility will require strategic asset management

3:35 Listen in as Kirsten explains more about exempt assets that may include a house, car, prepaid funeral, burial plot, small life insurance, and retirement accounts

4:27 Currently, 2025 offers no asset limits, exempt status for all assets, and penalty-free transfers

4:55 Next, Kirsten talks about the annual report trap that could devastate current recipients in 2026

5:36 Qualified yesterday, disqualified tomorrow: how current beneficiaries risk losing coverage despite meeting past requirements

138 episodes

193: URGENT: California Medi-Cal Asset Limits Return in 2026 - How to Prepare NOW

Absolute Trust Talk

published 14h ago