Finding a way to pay for your parent’s long-term care can cause immense stress. You want to provide them with the best possible care, but the cost of nursing homes or assisted living can quickly drain a family’s savings. Many families mistakenly assume that public programs will automatically cover these bills.
Medicare does not cover long-term care
Medicare is federal health insurance for seniors. It covers doctor visits, hospital stays and short-term rehabilitation. However, it does not cover long-term custodial care, such as help with daily bathing, dressing or eating. If your parent needs permanent nursing home care, you must find another way to pay for those services.
The newly reinstated Medi-Cal asset limits
Medi-Cal is the California Medicaid program. It does cover long-term nursing care if your parent qualifies. However, eligibility rules are changing.
Although California previously eliminated asset tests, the state reinstated asset limits on January 1, 2026. To qualify for long-term care Medi-Cal, an individual must have countable assets under $130,000. If your parent exceeds this limit, they must spend down their assets or use legal planning strategies to qualify.
How private long-term care insurance fits in
Private long-term care insurance is another option to fund senior care. These policies pay for home health aides, assisted living and nursing homes.
Your parent must purchase this coverage before they develop serious health issues. Once a senior needs immediate care, they can no longer qualify for a new private policy. Your options for funding long-term care include:
- Paying out of pocket with personal family savings
- Qualifying for public assistance through Medi-Cal
- Using a private long-term care insurance policy
Understanding these choices is the first step toward securing your parent’s future.
Develop a personalized plan for your parents
You do not have to make these hard decisions alone. Planning early can help protect your parent’s hard-earned assets while ensuring they receive quality care. Speak with a local elder law attorney to discuss your options and build a strategy that fits your family’s unique situation.