Share of Cost Medi-Cal in 2027: The Asset Limit Change Coming July 1 — and How California Families Can Prepare Now
Are you in Merced County, approaching retirement, or already on Medicare, and hearing that Share of Cost Medi-Cal rules may change in 2027? You may be wondering whether this means you will lose coverage, pay a monthly premium, or need to move your savings.
The answer is more specific: Share of Cost is not a denial of Medi-Cal. It is a monthly medical deductible that resets every month. Separately, California is scheduled to reduce the non-MAGI Medi-Cal asset limit on July 1, 2027.
Here is what California families should know now.
What Share of Cost Medi-Cal actually means
Share of Cost generally applies to certain non-MAGI Medi-Cal categories, including some people who are aged, blind, disabled, or medically needy.
In simple terms, the county allows a Maintenance Need Level (MNL) for basic living expenses. As of September 2026, the levels remain:
| Household | Maintenance Need Level | Simple example |
|---|---|---|
| One individual | $600 per month | $1,800 income − $600 = $1,200 SOC |
| Two-person couple | $934 per month | $2,500 income − $934 = $1,566 SOC |
Your actual county calculation may include other allowable deductions. The important distinction is this: your Share of Cost is not a bill you automatically send to the state.
Instead, you incur qualifying medical expenses during the month. Once those expenses reach your Share of Cost, Medi-Cal may begin paying for covered services for the rest of that month. The amount then resets the following month.
Qualifying expenses may include:
- Doctor and specialist visits
- Prescription costs and copayments
- Medicare Part B and Part D premiums
- Medicare Advantage or Medigap premiums
- Certain health, dental, and vision premiums
- Medically necessary supplies and services
Keep receipts, statements, and premium notices. Your county decides what can be credited, so ask for confirmation in writing.
The July 1, 2027 asset-limit change
The 2026–27 California budget and Department of Health Care Services (DHCS) guidance schedule a major change for certain non-MAGI Medi-Cal applicants and members.
| Period | One person | Two people |
|---|---|---|
| Through June 30, 2027 | $130,000 | $195,000 |
| Starting July 1, 2027 | $21,000 | $31,000 |
The lower limit will generally affect people who are 65 or older, have a disability, live in a nursing home, or qualify through another non-MAGI category. Certain assets may be excluded, including a primary residence, one vehicle, household items, and some retirement funds, but the details matter.
This change is separate from the monthly Share of Cost calculation. It may affect whether you remain eligible for a category of Medi-Cal; it does not automatically change your monthly SOC amount.
You can review the official DHCS Medi-Cal changes and asset-limit FAQs. The Legislative Analyst’s Office budget analysis also explains the budget context.
Do not transfer, give away, or spend down assets without qualified guidance. Transfers can create serious problems, especially if you may need long-term care. County notices control your case, so request a written explanation, review the countable assets listed, and ask for a Share of Cost recalculation if the information is wrong.
Three practical ways to reduce your monthly burden
1. Report every health-related premium
Many families report Medicare Part B but forget other recurring premiums. Ask the county whether your expenses can be credited, including:
- Medicare Part B and Part D
- Medicare Advantage or Medigap
- Private health insurance
- Dental and vision insurance
Dental coverage can also help protect against unexpected oral-health bills. You can review NCD Dental options.
2. Compare coverage carefully, not just the premium
A lower premium may come with a narrower network or higher out-of-pocket costs. With a PPO (Preferred Provider Organization), you generally have more flexibility to use out-of-network providers, although it may cost more. An EPO (Exclusive Provider Organization) usually requires you to stay in-network except for emergencies.
Before changing coverage, check:
- Whether your doctors and specialists participate
- Prescription formularies
- Dental and vision benefits
- Referral and out-of-network rules
Read more about PPO vs. EPO plans.
3. Ask whether another Medi-Cal category fits
Your current category may not be the only possibility. Ask whether the Working Disabled Program could apply if you work and have a disability. Married applicants should also ask about spousal protection rules, which may protect a spouse’s resources in certain situations.
A local example: Rosa in Atwater
Rosa, a widow in Atwater, receives $1,800 per month in countable income. Using the $600 Maintenance Need Level, her estimated Share of Cost is $1,200 per month before other allowable deductions.
Rosa provides documentation of her Medicare and dental premiums. She then has a doctor visit and prescription expenses in the same month. Those incurred costs help her reach the monthly responsibility, allowing Medi-Cal to help with covered care after the Share of Cost is met.
Her lesson was simple: keep documentation, report every eligible expense, and never assume a county calculation is final.
Related questions California families ask
1. Is Share of Cost Medi-Cal a denial?
No. It is a monthly deductible-like responsibility. You may qualify, but Medi-Cal generally begins paying for covered services after your monthly Share of Cost is met.
2. Does Share of Cost carry over to the next month?
Generally, no. It resets each month, so expenses incurred in one month do not automatically satisfy the next month’s responsibility.
3. Does Medicare cover hearing aids?
Original Medicare generally does not cover routine hearing aids. Some Medicare Advantage plans may offer limited hearing benefits. Medi-Cal may cover certain medically necessary hearing services or devices for eligible members, subject to program rules and authorization.
4. Who controls my final eligibility and Share of Cost?
Your county Medi-Cal office controls the official determination. If you disagree, request a written explanation and ask for a recalculation. You can locate your county office through DHCS.
Get clear, local guidance before 2027
Peace & Grace Insurance Services has served California families for more than 10 years since 2015, with deep roots in Atwater and Merced County. We are a BBB Accredited Business with an A+ rating, and our Christian company approaches each conversation with compassion, honesty, and respect.
We offer free, no-cost consultations to help you review your county notice, organize qualifying expenses, compare coverage, and understand possible options: without making rushed decisions about your assets.
- Book a free consultation online
- Call (209) 812-4026
- For life insurance information, visit Ethos Life
Whether you live in Atwater, Merced, or elsewhere in California, we are here to help you pursue clarity and peace of mind.
