Gavin Newsom, Governor of California, has introduced a proposal to reinstate asset limits for Medi-Cal, the state’s public health insurance program for low-income residents. The plan has sparked alarm among seniors and disabled Californians who rely on the service.
The Medi-Cal asset limit proposal would disqualify individuals with more than $2,000 in assets and couples with more than $3,000. While one home and one vehicle would be exempt, all other property, savings, and insurance policies would be counted toward the limit.
Newsom’s office said the move is intended to help reduce the state’s budget deficit. Officials reported that after California eliminated the asset limit last year, more than 115,000 seniors and disabled individuals enrolled in Medi-Cal—far exceeding expectations. The proposed policy could save $94 million in 2025 and over $500 million in 2026, according to the governor’s office.
Critics Warn of Coverage Loss and Long-Term Costs
The proposal has triggered backlash from legal groups, disability advocates, and healthcare organizations, who argue the measure would reverse recent progress and put vulnerable populations at risk. Advocates say reimposing the cap so soon after it was removed could lead to hundreds of thousands of people losing access to care.
They also criticized the $2,000 threshold, which was set in 1989, as outdated and unrealistic in today’s economy. Kim Selfon, an attorney at Bet Tzedek, called the plan “cruel,” adding, “$2,000 can’t serve as a safety net in today’s economy.”
Grace Song, a 66-year-old disabled woman in Los Angeles, has depended on Medi-Cal for the past ten years. She uses a wheelchair and requires 24-hour care. Recently, she received a $10,000 inheritance, which she used to repair part of her townhome and purchase medical supplies not covered by Medi-Cal.
If the asset limit is reinstated, she may lose coverage next year unless she reduces her total assets below $2,000. That could mean giving up her caregiver, spending down her remaining money rapidly, or potentially misreporting her finances.
Some California legislators argue the policy could backfire financially. Assemblymember Pilar Schiavo (Democrat – Santa Clarita) said cutting off Medi-Cal could push vulnerable residents into homelessness or institutional care—both of which cost the state more.
The state currently spends about $114,000 per year per person in nursing home care, roughly four times the cost of providing in-home care services.
The Medi-Cal asset limit proposal is expected to be reviewed by a legislative committee next month before heading to a full vote in the state assembly.
BY BRIAN CHOI [choi.inseong@koreadaily.com]
