Gov. Newsom proposes 'asset test' for low-income and disabled Medi-Cal applicants. What does that mean? Karen Garcia Fri, May 30, 2025 at 6:14 PM PDT5 min read
185 Gov. Gavin Newsom presents his revised state budget during a news conference in Sacramento on May 14. (Rich Pedroncelli / Associated Press) Millions of Californians who rely on Medi-Cal and In-Home Supportive Services could lose eligibility under a proposal requiring recipients to prove their assets total less than $2,000. Gov. Gavin Newsom's recent revised budget proposal highlighted a stark $37.6 billion increase in funding costs associated with Medi-Cal between the 2024 and 2025 fiscal year, compared to $17.1 billion in the 2014 through 2015 fiscal year. The dollar amount needed to fund the program is expected to continue rising over the next several years. The cost has been driven up by a surge in enrollment, pharmacy costs and higher managed care costs, according to the budget proposal. The Medi-Cal caseload reported an increase of 12.7 million recipients between 2019 and 2020 to 15 million in 2024 through 2025. Medi-Cal is the state's health care program that provides free or low-cost health coverage for those who qualify, specifically low-income adults and families, seniors and individuals with disabilities. In-Home Supportive Services provides in-home assistance to eligible aged, blind and disabled people as an alternative to out-of-home care. Newsom has proposed tackling the rising costs of the programs by reintroducing what is called the "asset test" to limit eligibility for the Medi-Cal and In-Home Supportive Services programs.
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The Medi-Cal caseload reported an increase of 12.7 million recipients between 2019 and 2020 to 15 million in 2024 through 2025. Medi-Cal is the state's health care program that provides free or low-cost health coverage for those who qualify, specifically low-income adults and families, seniors and individuals with disabilities. In-Home Supportive Services provides in-home assistance to eligible aged, blind and disabled people as an alternative to out-of-home care. Newsom has proposed tackling the rising costs of the programs by reintroducing what is called the "asset test" to limit eligibility for the Medi-Cal and In-Home Supportive Services programs.