In 2025, California remains the only state that has fully suspended (eliminated) the Medicaid asset test—for Medi-Cal non-MAGI programs—while other states are raising limits or considering a phase-out. Below is the plain-English rundown of what’s in effect now and what’s proposed next, with official sources.
Quick answer: Which states suspended Medicaid asset tests in 2025?
- California: Yes—assets are not counted for non-MAGI Medi-Cal (including long-term care) under a change that took effect January 1, 2024 and remains in effect through 2025. DHCS
- Other states: As of September 28, 2025, no other state has fully suspended/eliminated asset tests across ABD Medicaid. Some have raised limits or introduced proposals to phase them out (not yet in effect). New York’s 2025 bill proposes a $300k limit in 2025 and elimination in 2026. NYSenate.gov+1
Bottom line: In 2025, California is the outlier with a true suspension; watch New York and selected advocacy efforts elsewhere.
Why many Medicaid enrollees never face an “asset test” (and who still does)
Most MAGI-based eligibility groups—children, low-income parents, expansion adults, and pregnant people—do not have asset tests. Asset/resource limits primarily affect ABD pathways (seniors and people with disabilities) and long-term services & supports (LTSS) eligibility. Policy research in 2025 underscores that these ABD asset tests continue to restrict eligibility in most states. Justice in Aging
Bottom line: If you’re on a MAGI pathway, assets usually don’t matter; ABD/LTSS is where asset rules bite—except in California (suspended).
State moves in 2025: what’s in effect vs what’s proposed
California (Medi-Cal): suspension in effect; reinstatement proposed for 2026
- What changed: As of Jan 1, 2024, California stopped counting assets for non-MAGI Medi-Cal. That includes LTSS—an unusually broad reform. DHCS
- What’s next: In 2025 budget materials, the state proposes reinstating an asset limit no sooner than Jan 1, 2026 (administration cites deficit). External summaries echo the timeline; some reports cite differing draft numbers. Always check DHCS for the latest. DHCS+2California Academy of Family Physicians+2
Bottom line: Suspension holds in 2025. A 2026 reinstatement is proposed, not in effect. Verify with DHCS as the budget is finalized. DHCS
New York: 2025 bill to raise ABD asset limit and phase out in 2026 (proposal)
- What’s on the table: S3554 (2025) would lift ABD asset limits to $300,000 in 2025 and eliminate the asset test in 2026, aligning with prior advocacy memos. This is not yet law as of today. NYSenate.gov+1
- Context: NY already made big income/asset changes for ABD in 2023; statewide legal aid guidance documents the rollout. WNYLC Health
Bottom line: Watch New York—fast-moving proposals could dramatically shrink asset barriers but require enactment and implementation steps. NYSenate.gov
Other states to watch (increases/exemptions rather than full suspension)
- New Jersey: Advocacy calls to raise ABD & MLTSS asset limits; current low caps push people toward deep poverty before qualifying. (Status: advocacy/analysis; not a 2025 suspension.) Justice in Aging
- Maine: Policy changes/exemptions have effectively raised allowable assets in recent years (still not a full suspension). Choice Mutual
Bottom line: Beyond CA, 2025 is about higher limits or proposals, not blanket suspensions.
2025 state snapshot (illustrative)
Status as of September 28, 2025. Always confirm with your state Medicaid agency.
| State | Asset Test Status (ABD/LTSS) | What changed | Next known step | Source |
|---|---|---|---|---|
| California | Suspended (non-MAGI, incl. LTSS) | Assets not counted since 1/1/2024 | Proposed reinstatement no sooner than 1/1/2026 | DHCS change page & 2025 budget docs. DHCS+1 |
| New York | In effect (raised limits since 2023; not suspended) | 2023 increases for ABD | 2025 bill: raise to $300k (2025); eliminate in 2026 (proposal) | NY Senate S3554; advocacy memo. NYSenate.gov+1 |
| New Jersey | In effect | Advocacy to raise asset limits | Watch 2025-26 session | Justice in Aging NJ brief. Justice in Aging |
| Maine | In effect | Additional exemptions/higher effective caps | Monitor | Round-up mention (policy explainer). Choice Mutual |
| National context | — | MAGI groups generally no asset test; ABD still has one in most states | Federal H.R.1 changes don’t remove ABD asset tests | KFF, policy research. KFF+1 |
Bottom line: Only California has a current asset-test suspension in 2025. Several states are debating higher limits or future phase-outs.
How asset rules intersect with long-term care, spouses & estates (quick primer)
- LTSS eligibility: In most states, nursing home/HCBS pathways still use income + asset tests and a look-back for transfers; California is the 2025 exception due to its suspension. (Check your state’s Medicaid LTSS page.)
- Spousal rules: Where asset tests apply, federal spousal impoverishment protections let the community spouse keep a Community Spouse Resource Allowance (CSRA)—amount varies annually and by state.
- Estate recovery: Asset test suspension does not cancel estate recovery; states may still recover certain costs from estates, subject to federal rules and state options.
- Waivers: 1115/1915 waivers do not generally remove ABD asset tests statewide; they can tweak pathways or delivery models. Medicaid
Bottom line: Even with higher limits or a suspension, estate recovery and spousal rules still matter—verify details for your case.
Checklist: confirm your asset rule (5 steps)
- Identify your pathway: Are you MAGI (no asset test) or ABD/LTSS (likely asset test)? If in California, ABD/LTSS is not counted in 2025. DHCS
- Check your state’s current policy on the official site (search “Medicaid asset limit [your state] ABD”). For NY, watch S3554’s status; for CA, monitor DHCS budget updates. NYSenate.gov+1
- If seeking LTSS, look at transfer rules and any spousal allowances (CSRA), separate from asset tests.
- Document exemptions: Some assets are always non-countable (primary home up to equity cap, certain vehicles, etc.). State lists vary—read the fine print.
- Re-check before applying/renewing: Proposals can pass late in the budget cycle; California’s 2026 change is currently proposed, not active. DHCS
Bottom line: The pathway you use is the hinge. California is different in 2025; New York could change next.
Disclaimer
This article is general information, not legal or financial advice. Medicaid rules change and are applied differently by state and program. Always confirm with your state Medicaid agency or a qualified benefits counselor before acting.
FAQs
1) Which states suspended Medicaid asset tests in 2025?
California—for non-MAGI Medi-Cal—assets are not counted (effective Jan 1, 2024 and still in effect in 2025). Other states have limits or proposals, not full suspensions. DHCS
2) Is California bringing back the Medi-Cal asset test?
The state proposed reinstating an asset limit no sooner than Jan 1, 2026. That’s a proposal (budget-related), not current policy. Check DHCS for updates. DHCS
3) Did New York suspend the Medicaid asset test in 2025?
Not yet. S3554 (2025) would raise the ABD asset limit to $300,000 (2025) and eliminate it in 2026, but it must pass and be implemented. NYSenate.gov+1
4) Do asset tests apply to expansion adults and kids?
Typically no—MAGI groups generally don’t have asset tests. Asset/resource rules mostly affect ABD/LTSS pathways. Justice in Aging
5) If my state raises the asset limit, does that remove estate recovery?
No. Estate recovery is a separate set of rules; raising or suspending an asset test doesn’t automatically change recovery policies. Check your state’s rules.
6) Are waivers (1115/1915) removing asset tests?
Waivers can change delivery/benefits, but statewide elimination of ABD asset tests is uncommon via waivers. Track waivers for other changes. Medicaid
“Source:” callouts (sensitive facts)
- California suspension (in effect 2025): Source: DHCS “Asset Limit Changes—Starting Jan 1, 2024, assets will no longer be counted,” last checked Sep 28, 2025. DHCS
- California proposed reinstatement (2026): Source: DHCS budget fact sheet & policy summaries, last checked Sep 28, 2025. DHCS+1
- New York proposal (raise/phase-out): Source: NY S3554 (2025) and advocacy memo, last checked Sep 28, 2025. NYSenate.gov+1
- MAGI vs ABD context: Source: Justice in Aging explainer (2025), last checked Sep 28, 2025. Justice in Aging
- Federal 2025 context (H.R.1) overview: Source: KFF summaries, last checked Sep 28, 2025. KFF+1
Key takeaways & next steps
Takeaways:
- In 2025, California is the only state with a broad asset-test suspension (non-MAGI Medi-Cal). DHCS
- New York could become the next mover (2025 bill to raise ABD assets; 2026 phase-out proposed). NYSenate.gov
- Most MAGI groups already don’t face asset tests; the friction is in ABD/LTSS. Justice in Aging
- Estate recovery, spousal rules, and look-back remain relevant even where limits rise.
Next steps:
- If you’re in California, assume no asset count in 2025 for non-MAGI Medi-Cal—but track DHCS for 2026 updates. DHCS+1
- In New York, monitor S3554 and state agency guidance; don’t make planning moves until final. NYSenate.gov
- Elsewhere, check ABD/LTSS pages for current asset limits, exemptions, and CSRA rules before applying.