Governor Newsom Reinstates the Asset Test in regard to Qualifying for Long Term Medi-Cal

I have been working with families all across California for the past 10 years: helping them protect their hard-earned assets and qualify for a benefit that others, who may not have worked so hard, have access to freely. When a loved one faces a dramatic change of circumstances, leading to a change in lifestyle and living conditions, the fear, stress and worry can be overwhelming. It has been my honor and privilege to take the burden of "how can I pay for the care needed?" off a family's plate.

Governor Newson reinstated the Asset Test June 2025. This will change California back to an Asset Test State January 1st 2026. The decision to undo what he previously did has created a frenzy in the niche pocket of Medi-Cal Planning. And there are lots of questions and unknowns.... 

Let me give some background: 

Beginning July 1st 2022, CA went through a two-step process allowing all Skilled Nursing Facility residents the opportunity to qualify and utilize Medi-Cal benefits despite their financial blueprint. That meant, no matter your wealth, the state of CA would pay a portion, if not all of the costs associated with residing in a Skilled Nursing Facility. 

Prior to July 1st 2022, California was one of a handful of states that allowed an applicant to spend down the assets that would normally disqualify them from being approved for Long Term Medi-Cal. There was a strategy for every asset and Crossroads worked carefully and diligently navigating the "spend down process". Regulation stipulated that as long as the individual was "spent down" by the last day of the month, the applicant would be approved for that month moving forward. 

Fast forward to today.... 

For the remainder of 2025 assets will still not be counted. January 1st 2026 the following will go into effect:

Asset Limits:

One home and one vehicle are exempt assets. 

If you are single........ you cannot have more than $2000 in assets that could be liquidated into cash. 

If married, for simple conversational purposes, a married couple can retain $159,920 of combined assets. Newsom took away the spend-down strategy of gifting/transferring funds. Looks bleak at the surface level.... but there is hope and the opportunity to retain assets in the very near future. 

There is a wealth of confusion as to what the options will be moving forward. Will we be able to spend down by "gifting" ever again? Is one home still an exempt asset? What is the asset limit and how will that affect the stay-at-home spouse? 

For the time period between Jan 1st 2026 and June 30th 2026, there will be limited options, other than paying privately for Long Term Care in a facility. And if you are already using Long Term Medi-Cal at the skilled nursing level, and gifted / transferred assets between Jan 1st 2024 to today, you may face an transfer penalty that can result in future months of LTC not being covered (ineligibility period). Moving forward from today, if in an attempt to "spend down" prior to your next renewal you do so outside allowable spend down options, you too will face an transfer penalty that can result in an ineligibility period. 

Crossroads' mission is to empower families with information that will allow for educated decisions: where there is knowledge, there is power. We must face the chaos and accept that for things to get better, it may be challenging for a few months. But there's no time for denial or delay. We must confront the storm without falling trap to blind optimism or failing to address reality. 

When all is beyond our control, our minds are not. So, with patience and careful planning, we seek opportunities. 

Don't look back to realize that you missed the opportunity to protect the legacy of your family.... because with discerning attention and strategy, we have a way to preserve it. 

It's time to embrace the changes and find creative, regulated solutions.

Together........ we move one way..... forward. 

……. gen

Crossroads

2222 Francisco Dr # 220-470

El Dorado Hills, CA

95762