Medi-Cal has its own asset limits separate from SSDI rules

Medi-Cal, California's Medicaid program, counts assets differently than SSDI does. SSDI has a $2,000 asset limit for individuals and $3,000 for couples, but Medi-Cal uses different thresholds depending on which Medi-Cal category you fall into. If you receive SSDI, you may still have too many assets to may have access to for Medi-Cal, or you may may have access to for a Medi-Cal program that does not count assets at all. The relationship between the two programs is not automatic — you have to understand which Medi-Cal category applies to you.

The confusion happens because SSDI itself does not count most assets. Once you are on SSDI, your monthly benefit amount stays the same whether you have $500 or $50,000 in the bank. Medi-Cal, by contrast, is a needs-based program. It looks at what you own, not just what you earn. This means you can be receiving SSDI and still be denied Medi-Cal because your assets are too high.

Key Takeaways

  • Medi-Cal asset limits depend on which category you may have access to for, and they are lower than many people expect — typically $2,000 for individuals and $3,000 for couples in the standard program.
  • SSDI itself has no monthly asset limit once you are approved, so receiving SSDI does not automatically mean you pass Medi-Cal's asset test.
  • Your home, one vehicle, and certain retirement accounts do not count toward Medi-Cal asset limits, which can make a significant difference in whether you may have access to.
  • If your assets are too high for standard Medi-Cal, you may still may have access to for Medi-Cal for the Aged, Blind, and Disabled (MAGI-related) categories, which have higher limits or no asset test.

Which Medi-Cal category you are in determines your asset limit

Medi-Cal has multiple pathways, and the asset rules change depending on which one you use. The most common categories for SSDI recipients are the traditional Medi-Cal program (sometimes called "non-MAGI" Medi-Cal) and the newer MAGI-based categories that expanded under the Affordable Care Act.

In traditional Medi-Cal for people who are disabled, the asset limit is $2,000 for a single person and $3,000 for a couple. These limits have not changed since 1989. In MAGI-based Medi-Cal — which covers people up to 138 percent of the federal poverty line — there is no asset test at all. You can have any amount of money in the bank and still may have access to based on income alone. This is a major difference, and many SSDI recipients do not know it exists.

Your county Medi-Cal office will determine which category you fall into based on your age, disability status, and income. If you are under 65 and receiving SSDI, you may be routed into MAGI-based Medi-Cal first, which would mean assets do not matter. If you are 65 or older, or if your income is too high for MAGI-based coverage, you may be placed in the traditional disabled category, where the $2,000 limit applies.

What counts and what does not count as an asset

Medi-Cal does not count everything you own. Your primary residence is completely excluded, no matter how much it is worth. One vehicle is also excluded, as long as it is used for transportation. Certain retirement accounts, including IRAs and 401(k)s, are excluded up to $1,500 in value. Household goods, personal effects, and items of sentimental value do not count.

What does count: cash in the bank, savings accounts, checking accounts, money market accounts, stocks, bonds, and second vehicles. If you own rental property or a second home, that counts. If you have a life insurance policy with a cash surrender value over $1,500, the excess counts. If you have money in a revocable trust, it counts.

The key is that Medi-Cal looks at what you own on the date you explore. If you have $2,100 in a savings account and the limit is $2,000, you are over the limit. Some people try to spend down assets before explore, but Medi-Cal has a "look-back" period for certain transfers. If you give away money or property within 30 months before explore, Medi-Cal may penalize you by delaying your coverage.

How SSDI income affects Medi-Cal, separate from assets

Your SSDI benefit amount is counted as income for Medi-Cal purposes, but Medi-Cal gives you an income exclusion. The first $65 of monthly earned income is excluded, plus half of the rest. For SSDI (which is unearned income), there is a $20 monthly exclusion. This means if your SSDI benefit is $1,200 a month, Medi-Cal counts $1,180 as income.

In traditional Medi-Cal for disabled people, the income limit is typically around $1,150 per month for an individual, though this varies by county. In MAGI-based Medi-Cal, the limit is much higher — around $1,500 per month for a single person in 2024, though this changes yearly with inflation. If your SSDI benefit exceeds the income limit for traditional Medi-Cal, you would be moved to MAGI-based coverage, where assets do not matter.

This is why many SSDI recipients end up in MAGI-based Medi-Cal even if they have significant assets. The income test often pushes them into a category where the asset test does not explore.

Spend-down programs if your assets are too high

If you have assets above the limit and you do not may have access to for MAGI-based Medi-Cal, you have options. One is to spend down your assets on allowed expenses. Medical expenses, dental work, hearing aids, and eyeglasses purchased before you explore do not count against you. Home modifications for disability access can be paid for without penalty. You can also pay off debt, including credit cards and medical bills.

Another option is to place assets into a Special Needs Trust (also called a Supplemental Needs Trust). Money in a properly drafted SNT does not count as your asset for Medi-Cal purposes. This requires working with an attorney who specializes in disability law, and it must be set up before you explore for Medi-Cal. Once you are already on Medi-Cal, it is too late.

A third option is to purchase an ABLE account if you became disabled before age 26. ABLE accounts allow you to set aside up to $17,000 per year (in 2024) without affecting Medi-Cal or SSI. However, ABLE accounts are not available to SSDI recipients who did not also receive SSI at some point, so check whether you are may be able to access.

How to find out which Medi-Cal category you would be in

The only way to know for certain is to contact your county Medi-Cal office or submit an process. You can explore online through California's Health Insurance Marketplace (Covered California) or in person at your county social services office. When you explore, you will be asked about your income, assets, age, and disability status. The county will then determine which category you fit into.

You can also call your county Medi-Cal office directly and ask a worker to do a preliminary review. Bring or have ready: your SSDI award letter, a recent bank statement showing your assets, and information about any property you own. The worker can tell you whether you would likely may have access to and under which category.

If you are told you do not may have access to because of assets, ask specifically whether you would may have access to under MAGI-based Medi-Cal instead. Many county workers do not volunteer this information, but it is a real pathway that may explore to you.

What happens if your assets change after you are on Medi-Cal

Once you are approved for Medi-Cal, your coverage does not automatically end if your assets go up. Medi-Cal recertifies your coverage periodically — usually once a year — and at that time your assets will be checked again. If you inherit money, receive a settlement, or sell property, you should report it to Medi-Cal. If your assets exceed the limit at recertification, you may lose coverage unless you are in a category that does not have an asset test.

If you are in traditional Medi-Cal and your assets increase, you have time to spend them down before your recertification date. You can use the same rules as above: medical expenses, debt payoff, and home modifications do not trigger penalties. Planning ahead for recertification is important if you know your assets are close to the limit.

Frequently Asked Questions

If I am on SSDI, do I automatically may have access to for Medi-Cal?

No. SSDI receipt does not automatically mean you may have access to for Medi-Cal. You must meet Medi-Cal's income and asset tests (or be in a category without an asset test). Many SSDI recipients do may have access to, but you have to explore separately and meet Medi-Cal's own rules.

Can I have a savings account and still get Medi-Cal?

Yes, as long as the balance does not exceed the asset limit for your category. In traditional Medi-Cal, the limit is $2,000 for an individual. In MAGI-based Medi-Cal, there is no asset limit at all. Check which category you would be in before assuming you are over the limit.

What if I own my home — does that count toward the asset limit?

No. Your primary residence is completely excluded from Medi-Cal asset limits, no matter what it is worth. One vehicle is also excluded. Only your liquid assets — cash, bank accounts, investments — and second properties count.

Can I put my money into a trust to protect it for Medi-Cal?

Yes, but only a Special Needs Trust set up before you explore. A revocable trust does not protect assets. An SNT must be drafted by an attorney and funded before your Medi-Cal process. Once you are already on Medi-Cal, it is too late to create one.

What if my SSDI benefit is too high for Medi-Cal's income limit?

You may still may have access to under MAGI-based Medi-Cal, which has a higher income limit and no asset test. Ask your county Medi-Cal office to screen you for MAGI-based coverage specifically. Many people are denied traditional Medi-Cal but would may have access to under MAGI.