California Long-Term Care Insurance: Costs, Medi-Cal’s 2026 Asset Limit, and Partnership Policies

What care costs in California

Source: CareScout Cost of Care Survey, July–November 2025. The national median for assisted living was $76,200. Costs vary within the state, often running higher in large metro areas.

Medi-Cal’s asset limit is back in 2026

California eliminated Medi-Cal’s asset test in 2024, but reinstated it on January 1, 2026. The limit is $130,000 for an individual plus $65,000 for each additional household member. Your home, one vehicle, household items, and retirement accounts paying regular distributions are exempt. For long-term care, Medi-Cal can look back up to 30 months for transfers made for less than fair market value, though transfers from January 1, 2024, through December 31, 2025, won’t be considered in 2026 renewals (Justice in Aging).

The California Partnership for Long-Term Care

California runs one of the original partnership programs. Partnership-qualified policies protect assets from Medi-Cal spend-down based on the benefits the policy pays. With Medi-Cal’s asset limit back, partnership protection has become more relevant for middle-income Californians. See how partnership programs work.

What Medicare won’t pay

Medicare doesn’t cover long-term custodial care, the everyday help with bathing, dressing, and eating that most people need (Medicare.gov). It can cover a skilled nursing facility stay of up to 100 days after a qualifying hospital stay, but in 2026 you pay $217 a day for days 21 through 100 (CMS). For longer care, California residents rely on savings, insurance, or Medicaid.

Protections for a spouse at home

Federal rules protect part of a married couple’s assets and income when one spouse needs Medicaid long-term care. For 2026, states protect between $32,532 and $162,660 in assets for the spouse at home, with a monthly income allowance of at least $2,643.75 and up to $4,066.50 (CMS). Each state chooses where within those ranges to set its limits.

Coverage options for California residents

• Traditional long-term care insurance: the most care benefit per premium dollar, though premiums can rise.
• Hybrid life and LTC policies: care benefits plus a death benefit if you don’t need care.
• Life insurance riders: use part of a death benefit for care.
• Short-term care insurance: covers a year or less of care, with simpler underwriting.

Premiums for tax-qualified policies can be deductible as medical expenses, up to $4,960 for ages 61 to 70 and $6,200 for 71 and older in 2026 (ElderLawAnswers).

Example: three years of care in California

Illustrative only: three years in a California assisted living community at the 2025 median would cost about $252,000, and two years in a private nursing home room about $364,270. A policy paying $6,000 a month for three years would cover about $216,000 of that.

Checklist for California residents

1. Estimate care costs in your county; Bay Area and coastal costs often run higher.
2. Review your countable assets against the $130,000 Medi-Cal limit.
3. Talk with an elder law attorney before transferring assets, given the 30-month look-back.
4. Ask whether a policy is California Partnership-qualified.
5. Compare traditional, hybrid, and rider options while you’re healthy.

California long-term care FAQs

Related guides

• Long-term care insurance
• Long-term care costs
• How to pay for long-term care
• Partnership programs
• Hybrid life and LTC insurance
• Life insurance riders

Your next step

Tell us about your plans, and a licensed agent will compare California long-term care options.