Long-term care can be costly, and it’s not an expense that’s covered by Medicare. Some California residents need to apply for Medi-Cal to help cover the cost of this care, and they may encounter the term “lookback period” when they do.
The lookback period is the amount of time that’s checked to determine if there have been any transfers or sales of assets for less than fair market value. It’s assumed that those assets could have been used to cover part of the cost of long-term care. California made significant changes to the lookback period rule with California Assembly Bill 133.
What did California Assembly Bill 133 do?
California Assembly Bill 133 eliminated the asset limits for Medi-Cal long-term care coverage. Instead, the program is based solely on a person’s income. Income from almost all sources is considered as part of the Medi-Cal eligibility process for long-term care coverage. If a person’s income is over the allowable amount, which is based on various factors such as age and disability, they are responsible for sharing some of their long-term care costs.
Individuals who apply for Medi-Cal from January 2024 through June 2026 are still subjected to lookback rules for asset transfers, but only transfers made before December 31, 2023. This means that any transfers of assets made on or after January 1, 2024 aren’t considered as a factor for determining eligibility for long-term care.
There’s a 30-month lookback period for individuals who applied before or during January 2024. Those who apply after have one month of lookback period subtracted for each month after January 2024. This means that by June of 2026, the only month considered for eligibility for long-term care coverage is December 2023.
Anyone who’s working on an estate plan, and those who are concerned about possibly needing long-term care in the future, should explore their options for Medi-Cal planning. Working with a legal representative who can assist with this is beneficial for people who want to get things set up as efficiently and effectively as possible.