Big Medi-Cal news on the horizon! The most significant elder law issue is the matter of long-term care and the expenses that go along with it. Medicare does not cover custodial care, which is the assistance you would receive in a nursing home.
Fortunately, Medi-Cal will fill this gap if you can qualify. We have some news to share about upcoming changes to the eligibility rules, but first, let’s look at some eye-opening facts about seniors and long-term care.
Don’t Assume You Won’t Need Care
When you have always been independent, it’s hard to envision a time when you will need help with your day-to-day needs. While this is understandable, you have to take a sober look at life expectancies and the eventualities of aging.
According to the Social Security Administration, the life expectancy for a 67-year-old woman is 87 years, and it is 85 years for a man of the same age. It becomes a bit easier to imagine the need for living assistance when you are an octogenarian.
The U.S. Department of Health and Human Services tells us that 70% of seniors will eventually need help with their activities of daily living. More than half of people 65 years of age and older will incur long-term care expenses.
Long-Term Care Costs
The median annual charge for a private room in a Brentwood, California, nursing home is nearly $188,000 in 2025. One year is the average length of stay, and 13% of elders in nursing homes need the care for five years or more.
Some people can get the help they need in their own homes from licensed caregivers. The median cost for this type of assistance in our area is $87,000 annually, and these figures have been rising over recent years.
Medi-Cal Eligibility
Now that you understand the stakes, we can get to the point. In every state in the country, there has always been a Medicaid asset limit. California went in another direction with our Medi-Cal program, and the asset limit was eliminated for applications received on or after January 1, 2024.
As it turns out, this respite was short-lived. The California Department of Health Care Services (DHCS) has announced that the asset limit for seniors seeking long-term care assistance and people with disabilities will be reinstated at the beginning of 2026.
At that time, the asset limit will be $130,000 for an individual applicant, along with an additional $65,000 for each household member. This applies to countable assets, but your home, one vehicle, and your household items are not counted.
Home Ownership
Though you can qualify as a homeowner, this is not advisable because of the estate recovery mandate. The program is required to seek reimbursement from the estates of deceased beneficiaries. They could place a lien on your home if you owned it at the time of your death.
What’s the Solution?
An irrevocable Medi-Cal trust can prepare you for potential future long-term care costs. When you fund the trust, you surrender access to the principal. However, you can continue to receive income that is generated by assets in the trust.
You can also live in your home as usual after transferring it to the trust. If you apply for Medi-Cal to pay for living assistance at least 30 months after you fund the trust, the assets held by the trust will not count against you. Plus, your home would be protected from estate recovery efforts.
Take Action Today!
We can help you create a holistic nursing home asset protection plan that covers all your bases effectively. To get started, send us a message or call us at 925-516-4888.
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