California brought back a Medi-Cal asset limit on January 1, 2026, which matters for older adults planning for long-term care. We explain how annuities fit into retirement plans and point you to elder law help on the Medi-Cal details.
Tell us about your savings and income goals, and a licensed agent will follow up by phone or video.
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The asset limit applies to some Medi-Cal programs for older adults. Here are the basics.
| Item | 2026 rule | What it means |
|---|---|---|
| Asset limit, individual | $130,000 | Applies to programs like long-term care Medi-Cal |
| Each additional household member | Adds $65,000 | A couple's limit is higher |
| Effective date | January 1, 2026 | Planning done before then may be treated differently |
We start with the income you need, not with a product.
We point you to an elder law attorney for Medi-Cal questions.
We compare fixed and income annuities across insurers.
Starting January 1, 2026, California reinstated an asset limit of $130,000 for an individual, plus $65,000 for each additional household member, for certain Medi-Cal programs. It applies to programs for older adults and people with disabilities, including long-term care Medi-Cal and Medicare Savings Programs.
Medi-Cal’s treatment of an annuity depends on its terms, such as whether it’s irrevocable and how it names the state as a beneficiary. Rules are technical and change, so an elder law attorney can review the details before you buy an annuity for Medi-Cal planning. We can provide the product details they need.
Some annuities include riders that increase income if you need help with daily activities, and some hybrid products pair an annuity with long-term care benefits. These features add cost and vary widely. We compare them alongside other ways to plan for care costs.
An immediate income annuity turns a lump sum into payments that start within a year and can last for life or a set period. Deferred annuities grow first and pay later. Which fits depends on when you need income and how much flexibility you want to keep.
In California, the California Life and Health Insurance Guarantee Association provides protection up to set limits if an insurer becomes insolvent. Annuity promises are backed by the issuing insurer’s financial strength, so we compare insurer ratings along with product features.
Tell us about your savings and income goals, and a licensed agent will lay out options by phone or video.
Annuities are insurance products, not bank deposits, and are not FDIC insured. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurer. Guarantee association coverage is subject to limits and conditions. Surrender charges may apply. We do not provide tax or legal advice.
