Medi-Cal Planning for Long-Term Care in California

Concerned About the Cost of Long-Term Care?

For many California families, the cost of long-term care becomes a major financial concern later in life. Nursing home care in Southern California can easily reach $8,000–$12,000 per month, placing significant pressure on retirement savings.

Medi-Cal—the California Medicaid program—can help cover long-term care costs for eligible individuals. However, the application process and eligibility rules can be complicated, particularly as asset limits and eligibility standards continue to evolve.

From its Woodland Hills office near Warner Center, The Estate Planning & Elder Law Firm works with families across Los Angeles County—including communities such as Calabasas, Encino, and Tarzana—to help individuals understand eligibility options and plan ahead for long-term care needs.

What Medi-Cal Covers for Long-Term Care

Medi-Cal may help cover several types of long-term care services.

Common services include:

• Skilled nursing facility care
• Certain in-home care programs
• Long-term custodial care services
• Some community-based care programs

Because eligibility rules vary depending on income, assets, and marital status, planning ahead can help families access care while preserving certain resources.

Medi-Cal Asset Limits Returning in 2026

California recently expanded Medi-Cal eligibility by removing asset limits temporarily. However, asset limits are scheduled to return beginning January 1, 2026.

This means that:

• Applications filed after that date will again evaluate assets
• Renewal reviews may apply the updated rules
• Certain resources will count toward eligibility limits

Because eligibility rules are changing, families often want to understand how these rules may affect their planning decisions before applying for benefits.

Exempt vs Countable Assets for Medi-Cal

Understanding which assets count toward eligibility is one of the most important parts of Medi-Cal planning.

Common Exempt Assets

• One primary residence (under certain conditions)
• One vehicle
• Personal belongings and household items
• Certain retirement accounts depending on distribution status

Common Countable Assets

• Bank accounts and savings
• Non-retirement investment accounts
• Additional real estate
• Certain financial assets and investment vehicles

Because these classifications can change depending on circumstances, eligibility planning often involves reviewing how assets are structured before applying.

Pre-Planning vs Crisis Medi-Cal Planning

Families approach Medi-Cal planning at different stages.

Pre-Planning

Occurs before long-term care is needed and allows time to structure assets in advance of eligibility requirements.

Crisis Planning

Occurs when a loved one already requires nursing home care and eligibility must be addressed quickly.

Although planning options vary depending on timing, early planning typically provides more flexibility.

Special Considerations for Married Couples

Medi-Cal rules include spousal protections designed to prevent the healthy spouse from becoming impoverished when the other spouse requires long-term care.



These rules may allow the spouse living at home to retain certain assets and income levels. Because these protections involve complex calculations, couples often benefit from planning guidance before submitting a Medi-Cal application.

Understanding Medi-Cal Estate Recovery

After a Medi-Cal recipient passes away, the state may seek reimbursement for certain services through the Medi-Cal Estate Recovery Program.

Recovery may apply when:

• The individual was age 55 or older when receiving benefits
• Long-term care services were provided
• Certain estate assets remain after death

Estate recovery rules contain exceptions and limitations, which is why planning strategies sometimes focus on reducing the likelihood of recovery claims against family assets.

Guidance for Families Navigating Medi-Cal Planning

Planning for long-term care can involve difficult decisions about finances, family responsibilities, and eligibility rules. Families often want clear explanations about how Medi-Cal planning fits within their broader financial and estate planning goals.

Richard M. Seff has spent more than three decades guiding families through estate planning, elder law, and probate-related matters from the firm’s Woodland Hills office, helping clients across Los Angeles County evaluate Medi-Cal planning strategies designed to align with California eligibility rules.

The firm also serves families throughout Ventura County, including Thousand Oaks, where many households seek guidance on long-term care planning that protects both financial stability and family housing.

Common Questions About Medi-Cal Planning