California Medi-Cal Assisted Living Benefits Shifted
As benefits change, families should review care coverage for aging loved ones in California.
Updated on Oct. 2, 2026 in Eldercare
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Governor Gavin Newsom is weighing a bill to study mandatory in-home care coverage under Medi-Cal, even as Health Net prepares to discontinue assisted-living benefits. These changes impact families relying on community-based services in specific counties starting in 2027.
Why it matters
Current incentives often favor facility-based care, and the proposed study seeks to address this imbalance for seniors remaining in their own homes. This shift is critical as the state already faces a significant waitlist for essential assistance programs.
The California Assisted Living Waiver program currently manages a waiting list of 18,000 individuals. Additionally, a 10% reduction in home-based services is projected to cost the state $57 million in the first year and over $1 billion over five years.
The players
Gavin Newsom
The Governor of California who is currently evaluating legislation to expand in-home care study requirements under state medical programs.
Health Net
A health insurance provider that manages Medi-Cal plans and has announced the upcoming elimination of certain assisted-living benefits.
The details
The proposed legislation directs the state to analyze the feasibility of mandating in-home care benefits within Medi-Cal, aiming to shift priorities away from institutional settings. Meanwhile, Health Net is phasing out coverage for assisted-living costs and specific in-home care services, forcing families in affected regions to re-evaluate their long-term care plans.
Timeline
September 2026: Health Net announced the planned discontinuation of benefits.
January 1, 2027: Health Net will officially stop assisted-living coverage in specific counties.
The Home Front
These shifts highlight ongoing pressures within the California Assisted Living Waiver program as providers and the state adjust to rising service costs. The development reflects a broader struggle to balance Medicaid funding with the growing demand for community-based care.
If you or a family member rely on Medi-Cal for assisted living or home-based services, contact your plan provider immediately to confirm your coverage status after the new year. It is also advisable to speak with a licensed social worker or care coordinator to explore alternate resources in your county.
The takeaway
Families should prepare for potential gaps in coverage by auditing their current care agreements and checking eligibility for alternative state programs. Keep a file of all correspondence regarding benefit changes to facilitate discussions with healthcare advocates.
Further reading
Learn more about local support options in our guide to Eldercare.
Source note: This article includes information reported by El Observador.
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