Medi-Cal Update 2025-9 Asset Limits for Non-MAGI

Reinstatement of the Asset Limits Test for Non-MAGI Programs 

Date References Clerical Implementation
11/25/25 ACWDL 25-14, 25-20   January 1, 2026

Background

As part of the Budget Act of 2021, a two-phased approach was taken to eliminate the asset limits for the Non-MAGI Medi-Cal programs. The first phase, effective July 2022, increased the asset limits to $130,000 for one person and $65,000 for each additional household member. The second phase, beginning January 1, 2024, eliminated the asset limits for all Non-MAGI Medi-Cal programs.

Changes and Implementation Dates

Effective January 1, 2026, the asset limit is reinstated for the Non-MAGI programs, excluding the Pickle, Disabled Adult Child (DAC), and Disabled Widower (DW) programs.

The asset limits for these programs will return to the phase one values of $130,000 per individual and $65,000 per additional household member.

New Applicants

  • Individuals with an application date on or after January 1, 2026, will be required to report asset information and provide verification of their assets as part of their eligibility determination.
  • Applications received before January 1, 2026, will not be required to report asset information or provide verification of assets as part of the application processing, even if the county determines eligibility for the application after January 1, 2026.
  • When an individual requests retroactive coverage, they will not be required to verify assets for any months of eligibility before January 1, 2026.

Annual Renewals

  • All annual renewals due on or after January 1, 2026, within the impacted Non-MAGI programs, will be required to report and provide verification of their assets as part of the eligibility determination. 
  • Non-MAGI Medi-Cal renewals due before January 1, 2026, who were discontinued or are pending an eligibility determination, are not required to provide asset information or verifications. This includes individuals within the 90-day cure period whose renewal due date was before the January 1, 2026, implementation date. 

Change in Circumstance

  • Effective January 1, 2026, impacted Non-MAGI Medi-Cal members who report a Change in Circumstance (CIC) that is unrelated to assets, the county shall attempt to verify the member’s assets ex parte. If the ex parte is unsuccessful due to discrepant information (incomplete CIC), the county must update the case eligibility based only on the reported change, but not extend the annual renewal date. Individuals are not required to report assets until their scheduled 2026 renewal and any CIC report thereafter. 

Medi-Cal Handbook Policy

When the elimination of the asset limit policy came into effect on January 1, 2024, the Medi-Cal asset policy was not removed, as there was a historical need for prior year eligibility determinations. The handbook was noted with the date of the elimination of the asset limits, and this notation will be removed before January 1, 2026. 

All Medi-Cal policies related to assets remain in their respective handbook topics. 

Verifying Assets

When a verification of assets is needed, staff must first ex parte the case using all available electronic sources (MEDS, IEVS-AVP) before requesting paper verifications of assets via the MC 355. 

Asset Verification Program  

Effective January 1, 2026, the Asset Verification Program (AVP) is reinstated for all Non-MAGI program applicants and recipients. The AVP requirement excludes programs not subject to the asset limit (Pickle, DAC, DW). 

The AVP process has been revised to include a new policy on ex parte AVP processing and important AVP considerations during application, redetermination, and CIC. The new AVP policies will help minimize delays in eligibility determinations, reduce administrative workload, and ensure uninterrupted access to care for eligible individuals. 

Data Systems and Forms

CalSAWS is programmed with the new policy and will activate the asset limits functionality for eligibility determinations beginning January 1, 2026. The Department of Health Care Services has mailed the impacted population an outreach letter and a frequently asked questions document. All impacted NOA verbiage will be updated with the implementation of this policy. 

Other Programs

The reinstatement of asset limits is a Medi-Cal policy; however, multi-program cases with impacted Non-MAGI members must use this new policy upon implementation. 

SS

SSBS Supervisor

Please review this information with your staff immediately. 

Department of Employment & Benefits Services

Contact Person(s): Manuel Garcia and Megan Turney, SSA Business Policy and Implementation Specialists, 408-755-7540.