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December 11, 2025
If you or your spouse may need long-term care, questions about Medi-Cal, income limits, and asset protection often come up quickly. Many married couples worry that qualifying for Medi-Cal will leave the healthy spouse without enough resources to live on. At Chubb Law Firm PC in Folsom, we help Sacramento-area families understand how Medi-Cal planning works and how the law protects the spouse who remains at home. Here is a clear overview of what the 2026 Medi-Cal spousal protections mean and why they matter.
Most Americans aged 65 and older will need some form of long-term care in their later years. The cost of such care has been steadily increasing. In 2025, the California average monthly cost for a semi-private room in a nursing home was $13,656. Thankfully, Medi-Cal provides a safety net for millions of older adults who need long-term care services.
Medicaid is a joint federal and state program that offers health care coverage to Americans who have limited income and relatively few assets. The asset and income limits are quite strict. In most states, an individual cannot have more than $2,000 in countable assets to qualify for Medicaid benefits. California has a higher limit of $130,000.
You may be wondering how these limits affect a married couple if one of them needs long-term care but the other doesn’t. Would the healthy spouse have to live in poverty? Fortunately, the Medi-Cal program permits the healthy spouses of Medi-Cal beneficiaries to retain limited resources to keep them from becoming impoverished.
Each year, the Centers for Medicare & Medicaid Services (CMS) issues updated Community Spouse Resource Allowance (CSRA) figures. The CSRA outlines how much of the couple’s assets the healthy spouse can keep while their partner gets their long-term care covered by Medicaid. The CSRA generally increases each year.
Starting in January 2026, a spouse who continues to live at home while their partner receives Medicaid long-term care benefits can retain up to $162,660 in assets, an increase from $157,920 in 2025. The minimum CSRA for 2026 will be $32,532. State Medicaid programs can set their limits within this range. California's Medi-Cal uses the highest limit.
If a spouse receives long-term care benefits through Medi-Cal while their partner continues to reside at home, the partner at home is also allowed to receive a limited income each month. Medicaid calls this the minimum monthly maintenance needs allowance (MMMNA), and for 2026 the amount will be between $2,643.75 and $4,066.50. The maximum MMNA for 2025 was $3,948. California has always used the highest MMMNA. Note that Alaska and Hawaii’s minimums are both higher than the standard minimums for the other 48 states.
The rising costs of long-term care, such as nursing homes, assisted living, and in-home services, can quickly drain a couple’s savings. Without protections like the CSRA and MMNA, the healthy spouse remaining at home could be faced with severe financial hardship. By updating these federal allowances each year, CMS helps ensure that Medicaid’s long-term care eligibility rules remain sensitive to inflation and cost-of-living pressures.
For many older married couples, these 2026 figures represent a noticeable increase in the amount of assets and income they can preserve — offering a stronger financial safety net for the spouse who doesn’t need Medi-Cal benefits.
Medi-Cal's spousal protections are designed to help couples navigate long-term care without leaving the healthy spouse financially vulnerable, but the rules can be complex. Staying informed about updated Medicaid income and asset limits can make a meaningful difference when planning ahead. If you have questions about Medi-Cal planning, long-term care options, or protecting your spouse and your savings, Chubb Law Firm PC is here to help. Call (916) 241-9661 to schedule a Discovery Call.
This update does not eliminate the ability to make catch up contributions, but it does change the tax treatment for many higher earning savers. Reviewing how Roth contributions, income thresholds, and long term tax planning work together can help you adjust your strategy before the new rules take effect. If you would like guidance on how this change fits into your overall retirement or estate plan, Chubb Law Firm PC is here to help. Call (916) 241-9661 to schedule your Discovery Call.
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