Medi-Cal, California’s Medicaid program, has long been a lifeline for lower-income individuals and families, providing essential healthcare services. While the program has successfully supported more than 15 million Californians, millions more were denied eligibility because of a long standing asset limit policy.
Seeing the need for change, Governor Gavin Newsom signed Assembly Bill 133 into law, kicking off a two-phase approach for complete asset limit elimination with the hope of providing more Californian’s access to quality healthcare.
Below we break down the changes to Medi-Cal asset limits for 2024, explaining new eligibility requirements, what steps you should take to ensure you qualify and frequently asked questions you should know.
Starting January 1, 2024, California became the first state in the country to completely eliminate asset limits for their state-based Medicaid program. Assets, such as bank accounts, cash, second vehicles, and homes are no longer counted when determining Medi-Cal eligibility.
This significant adjustment reflects a more realistic financial picture for many Californians and removes the previous $2,000 individual and $3,000 couple Medi-Cal asset limit.
This change is expected to ease the financial burden on those who previously fell just above the old asset thresholds, offering them access to essential medical services.
The elimination of asset limits will expand Medi-Cal coverage to a broader population across the state, but it doesn’t guarantee coverage. Before you apply for Medi-Cal, you’ll need to ensure you qualify for the program.
Medi-Cal eligibility is now primarily based on income and household size. The state uses the Federal Poverty Level (FPL) to determine income eligibility. For 2024, the income limits are generally expressed as a percentage of the FPL and vary by the individual’s category.
For example, an individual may qualify for Medi-Cal if their yearly income is at or below $20,783. A couple may qualify for Medi-Cal if their annual income is at or below $28,208. Here is a full breakdown of income limits.
If your income changes, however, it is important to report any increase or decrease through the Covered California portal to maintain eligibility.
Certain groups can also qualify for Medi-Cal. You can qualify for Medi-Cal if you are:
Once you have confirmed your eligibility, you will need to complete the Single Streamlined Application and submit it in person, by mail, by phone or online.
According to the Department of Healthcare Services, the process of verifying your eligibility–from the time you submit your application to when you receive your Benefits Identification Card (BIC)–typically takes around 45 days.
How do I apply for Medi-Cal?
Individuals or families seeking to apply for Medi-Cal coverage can do so:
If I am a current Medi-Cal member do I need to submit any additional paperwork related to my assets?
No, you no longer need to report your assets on Medi-Cal renewal forms. Starting in 2024, renewal forms will no longer ask for asset information.
I was not previously eligible for Medi-Cal. Will I now be eligible for the program?
Short answer, it depends. Even those assets no longer impact your eligibility, there are still other eligibility requirements you must meet in order to qualify.
Is there a cost for Medi-Cal?
As of July 1, 2022, Medi-Cal monthly premium amounts have been reduced to $0.
Do I need to pay a fee to apply for Medi-Cal?
NO! Beware of online scams that require you to submit payment information in exchange for Medi-Cal coverage. This is also a good reminder to read up on the latest cybersecurity tips so that you don’t fall victim to cyber crimes that can negatively impact your financial assets.
Who can I consult if I have questions about Medi-Cal eligibility or coverage?
The Department of Health Services recommends contacting your local County Office for assistance with any requests related to Medi-Cal eligibility or coverage. The HCS is also a hub of information for any questions or concerns you may have.
This is not the first attempt to create positive change for Californians struggling with rising healthcare costs. In 2021, California’s Master Plan for Aging kicked off, creating a 10-year blueprint on how to better support the state’s aging residents through housing, healthcare services, community-based inclusion initiatives, caregiver opportunities, and economic security.
Just 3 years later in 2024, California residents are no longer restricted by asset limits when qualifying for this important state-based program, expanding access to key healthcare coverage for even more Californians.
Regulations and rules can change, so staying informed about the latest updates from Medi-Cal is essential. Regularly check official resources or consult with professionals who specialize in Medi-Cal planning and subscribe to our blog, Prudent Planning for more information relevant to your financial future.
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