SSDI payments do not count as assets under Medi-Cal rules

When you receive Social Security Disability Insurance (SSDI) payments, Medi-Cal does not count that money as an asset that disqualifies you. This is one of the few income sources that gets special treatment in the Medi-Cal system. The state considers SSDI a form of income, not savings or property you own, which means it affects your monthly income limit but not your asset limit.

This distinction matters because Medi-Cal has two separate limits: one for how much money you can earn or receive each month, and another for how much you can have in the bank or own in property. Your SSDI payment counts toward the income limit but does not reduce your asset limit at all. You can have the full asset limit and still receive Medi-Cal as long as your monthly income stays within range.

The asset limit itself is high enough that most people on SSDI do not hit it. For a single person, the limit is $2,000 in countable assets. For a couple, it is $3,000. These limits have not changed since 1989, so they are generous by modern standards. Certain things do not count as assets at all — your home, your car, household goods, and personal items are all excluded.

Key Takeaways

  • SSDI payments count as income for Medi-Cal, not as assets, so they do not reduce how much money you can have in savings.
  • The asset limit for a single person is $2,000 and for a couple is $3,000, and most people on SSDI stay well below this.
  • Your home, car, household goods, and personal items do not count toward the asset limit at all.
  • If your SSDI payment pushes your total monthly income above the limit, you may lose Medi-Cal coverage even though you have no assets problem.

How Medi-Cal counts your SSDI as income

Your SSDI payment is counted as unearned income on your Medi-Cal process. Unearned income is money that comes to you without you working for it — Social Security, pensions, interest, and gifts all fall into this category. Medi-Cal adds up all your unearned income and compares it to the monthly income limit for your household size.

The income limit varies depending on which Medi-Cal program you are in. For most adults under 65, the limit is roughly 138 percent of the federal poverty line. For 2024, that means a single person can earn or receive about $1,927 per month and still be within the income limit. If your SSDI payment plus any other income exceeds this amount, you will not be found within the income range, even if you have no assets at all.

When you report your SSDI to Medi-Cal, you will need to provide your Social Security statement or a letter from the Social Security Administration showing your monthly benefit amount. Medi-Cal will use the exact figure you receive each month, not an estimate. If your SSDI amount changes — because of a cost-of-living adjustment or a change in your circumstances — you must report that change within 10 days.

What counts and what does not count as an asset

Medi-Cal divides your belongings into countable and non-countable assets. Countable assets are things like money in a bank account, a savings account, a money market account, or cash on hand. Stocks, bonds, and other investments also count. If you own property other than your home — a second house, a rental property, or land — that counts as an asset too.

Non-countable assets are things Medi-Cal ignores completely. Your primary residence, no matter what it is worth, does not count. Your car does not count, even if it is paid off and worth $20,000. Household goods, furniture, clothing, and personal items do not count. Life insurance policies with a face value under $1,500 do not count. Burial plots and burial funds set aside for you do not count.

This means you could own a home worth $500,000, drive a car worth $30,000, have $2,000 in the bank, and still be within Medi-Cal's asset limits. The only thing that would matter is whether your monthly income — including your SSDI — stays within the income limit. Many people on SSDI have assets well below the $2,000 limit anyway, so the asset rule rarely becomes the reason someone loses coverage.

When SSDI income might disqualify you from Medi-Cal

The real risk for someone on SSDI is not the asset limit but the income limit. If your SSDI payment is high enough, it can push you over the monthly income threshold and make you ineligible for Medi-Cal. This happens most often to people who receive both SSDI and another source of income — a part-time job, a pension, or spousal support.

If your income exceeds the limit, you have other options. You may be able to enroll in a Medicare plan instead, especially if you have been on SSDI for at least two years and are now may be able to access for Medicare. Some states offer programs like Medicaid Buy-In programs that let people with disabilities keep Medicaid even if their income is higher, as long as they meet other requirements. You should contact your local Medi-Cal office or a benefits counselor to explore what is available in your situation.

Another option is to look into whether you can set aside some of your income in an ABLE account or a Special Needs Trust. These are legal structures that let you keep money without it counting against your Medi-Cal income limit. An ABLE account is simpler and faster to set up, but it has a $17,000 annual contribution limit. A Special Needs Trust is more complex but has no contribution limit. A benefits counselor or an attorney who specializes in disability law can help you decide which is right for you.

How to report SSDI when you explore for Medi-Cal

When you fill out your Medi-Cal process, you will be asked to list all sources of income. You will need to provide your monthly SSDI amount — the exact dollar figure you receive each month. You can find this on your Social Security statement, which you can access online at ssa.gov, or you can call Social Security at 1-800-772-1213 and ask for a current benefit statement.

You will also need to report any other income you have: wages from a job, unemployment benefits, child support, alimony, rental income, or interest from savings. Medi-Cal adds all of these together to determine whether you are within the income limit. If you are explore online through your county's website or through the California Department of Social Services portal, you can upload a copy of your Social Security statement as proof.

After you explore, Medi-Cal will send you a notice telling you whether you are within the income and asset limits. If you are approved, your coverage usually starts on the first day of the month after you explore, or sometimes retroactively to the month you applied. If you are denied because your income is too high, the notice will explain your options and tell you whether you can appeal.

Changes to report after you are approved

Once you have Medi-Cal, you must report changes to your income within 10 days. If your SSDI amount increases because of a cost-of-living adjustment, you must report it. If you start working or stop working, you must report that. If you receive a one-time payment — a tax refund, an inheritance, or a settlement — you do not have to report it as income, but if it is large enough to push your bank account over $2,000, you should report it as an asset change.

You can report changes by phone, by mail, or online through your county's Medi-Cal portal. Keep a record of when you reported the change and to whom you spoke. If your income goes over the limit, Medi-Cal will send you a notice that your coverage will end. You will have a chance to appeal or to ask for a hearing before your coverage actually stops.

Frequently Asked Questions

If I have $5,000 in savings, will that disqualify me from Medi-Cal?

Yes, if you are a single person. The asset limit is $2,000, so having $5,000 in a bank account makes you over the limit. However, if $3,000 of that is in a burial fund set aside for your funeral, that $3,000 does not count, and you would be within the limit. Talk to Medi-Cal about what you have and how it is held.

Does my SSDI payment count differently if I am married?

Your SSDI payment counts the same way, but the income and asset limits are higher for a couple. The asset limit is $3,000 instead of $2,000, and the income limit is higher too. If you are married and your spouse also receives SSDI, both payments are added together and compared to the couple's income limit.

What happens if my SSDI goes up and I lose Medi-Cal?

You will receive a notice 10 days before your coverage ends. You can appeal or request a hearing. You may also be able to enroll in Medicare if you have been on SSDI for two years, or look into a Medicaid Buy-In program in your state. Contact your local Medi-Cal office or a benefits counselor right away.

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

Yes, a Special Needs Trust can hold money without it counting against your Medi-Cal limits, but the trust must be set up correctly. You cannot straightforward put money into any trust — it has to be a specific type called a Supplemental Needs Trust or a Self-Settled Special Needs Trust. An attorney who knows disability law can help you set this up.

If I own my home, does that affect my Medi-Cal?

No. Your primary residence does not count as an asset for Medi-Cal, no matter what it is worth. You can own a home and still be within the asset limit. The only thing that matters is your monthly income and any other countable assets like bank accounts or investments.