Got a Medi-Cal Notice of Action in 2026? What Orange County Families Need to Do This Week
A plain white envelope arrives in the mail. At the top, in bold: Notice of Action. Below it, a message that Medi-Cal benefits will be terminated — or significantly reduced — effective in 30 days.
If you or a loved one received this letter in 2026, you are not alone. Tens of thousands of Orange County families are navigating this same shock right now. The reason: California reinstated asset limits for Medi-Cal effective January 1, 2026, reversing a two-year period during which the asset test had been eliminated. The California Department of Health Care Services (DHCS) is now conducting statewide redeterminations, and Notices of Action are being mailed to recipients whose financial assets may exceed the newly reinstated thresholds.
This article explains exactly what is happening, what the letter means, and — most importantly — what you should do in the next 10, 30, and 90 days to protect your family’s care.
What Is a Medi-Cal Notice of Action?
A Notice of Action (NOA) is an official document from your county’s Social Services Agency informing you of a proposed change to your Medi-Cal benefits. The NOA may signal a termination of benefits, a reduction in covered services, a change in your share of cost, or a denial of a new application or service request.
The key word is proposed. An NOA is not a final decision — it is a notice of intent. You have legal rights to challenge it through a formal appeal process, and in many cases, families who act quickly can preserve their benefits in full while the appeal is reviewed.
Critical dates on your NOA: The letter includes a “proposed action date” — typically 30 days from the mailing date. Acting before that date is essential. If you request a State Fair Hearing within 10 days of the NOA’s mailing date, you may qualify for Aid Paid Pending, which keeps your current benefits in place during the entire appeal process at no cost to you.
Why Notices Are Being Sent: The 2026 Asset Limit Reinstatement
California’s reinstatement of the Medi-Cal asset limit has many OC families sorting through financial records for the first time in years.
From January 1, 2024 through December 31, 2025, California eliminated the Medi-Cal asset test entirely. During that two-year window, your savings accounts, investments, or second home could not be used to deny or terminate your Medi-Cal coverage. That policy has now ended.
Effective January 1, 2026, California reinstated the following countable asset limits for Medi-Cal eligibility:
- Individuals: $130,000 in countable assets
- Married couples: $195,000 in combined countable assets
To enforce these rules, DHCS launched a statewide redetermination process. County eligibility workers are reviewing beneficiaries’ financial situations and mailing Notices of Action to anyone whose assets may exceed the new thresholds. Estimates suggest more than 55,000 Orange County Medi-Cal recipients could receive a redetermination notice — and the process will continue throughout 2026.
Because the asset test was removed for two full years, many families enrolled in Medi-Cal during 2024–2025 without ever disclosing their financial assets. For these newer enrollees in particular, the NOA may come as a complete surprise.
Countable vs. Exempt Assets: What Actually Counts?
Not all assets count toward the $130,000 or $195,000 limit. Understanding the difference between countable and exempt assets can make or break your eligibility determination — and many NOAs are issued in error when the county worker fails to properly classify exempt items.
| Asset Type | Medi-Cal Status |
|---|---|
| Primary home (your main residence) | EXEMPT — Does not count |
| One primary vehicle | EXEMPT — Does not count |
| Personal belongings, furniture, clothing | EXEMPT — Does not count |
| Prepaid burial funds (up to $1,500 per person) | EXEMPT — Up to limit |
| Life insurance (face value up to $1,500) | EXEMPT — Up to limit |
| Checking and savings accounts | COUNTABLE — Counts toward limit |
| Certificates of deposit (CDs) | COUNTABLE — Counts toward limit |
| Stocks, bonds, and mutual funds | COUNTABLE — Counts toward limit |
| Vacation home or rental property | COUNTABLE — Counts toward limit |
| Second or recreational vehicle | COUNTABLE — Counts toward limit |
| Cash value of life insurance over $1,500 | COUNTABLE — Excess portion counts |
If your countable assets are near but potentially under the threshold, it is worth verifying the calculation yourself before accepting the county’s determination. Many families that initially appear over the limit are in fact eligible once exempt assets are properly excluded.
Your Action Timeline: 10 Days, 30 Days, 90 Days
Meeting with a benefits advisor within the first 10 days dramatically improves your family’s chances of preserving coverage.
Within 10 Days — Act Now
- Request a State Fair Hearing immediately
- Ask specifically for Aid Paid Pending
- Note the NOA’s exact mailing date
- Do NOT wait for a callback — submit in writing or online
Within 30 Days — Build Your Case
- Gather 3 months of bank and investment statements
- Pull your home deed and vehicle titles
- List all life insurance policies with face values
- Contact LASOC or HICAP for free guidance
- Categorize each asset as countable or exempt
Within 90 Days — Resolve It
- Submit all documentation to the county
- Attend your State Fair Hearing
- Receive the hearing officer’s written decision
- Explore spend-down options if still over limit
- Arrange private care if benefits are reduced
How to Request a State Fair Hearing
Requesting a State Fair Hearing is your legal right under both California and federal law — and it is free. You have three ways to submit the request:
- Online: Visit the California Department of Social Services State Hearings Division online portal and complete the web form — include a copy of your NOA
- Phone: Call 1-800-952-5253 (TDD/TTY: 1-800-952-8349), available Monday through Friday, 8 a.m. to 5 p.m.
- Mail: Write to CDSS State Hearings Division, P.O. Box 944243, Sacramento, CA 94244-2430, and enclose your NOA
When you submit your request, explicitly state that you are requesting Aid Paid Pending. This language must appear in your request for the protection to apply. Aid Paid Pending freezes the proposed termination and keeps your current benefits active while your case is under review — but only if requested within 10 days of the NOA mailing date.
Understanding the Spend-Down Option
If your assets genuinely exceed the new limits and cannot be brought below them through proper exempt-asset classification, California’s Medi-Cal spend-down provision may still offer a path to eligibility. Spend-down allows recipients to reduce countable assets by directing them toward qualifying expenses, including:
- Medically necessary services not covered by any insurance
- Home modifications required for disability access (ramps, grab bars, stair lifts)
- Qualifying prepaid funeral or burial arrangements (within the $1,500 per-person limit)
- Durable medical equipment and medical supplies
A HICAP counselor or elder law attorney can help you design a legally compliant spend-down strategy that brings you within the threshold without sacrificing long-term financial security.
Orange County social workers and benefits counselors are available at no cost to guide families through the redetermination and appeal process.
Free Help for Orange County Families
- Orange County Social Services Agency — Medi-Cal Redeterminations 1-800-281-9799 | For questions about your NOA, document submission, and redetermination status
- Legal Aid Society of Orange County (LASOC) (714) 571-5200 | Free civil legal assistance, including Medi-Cal appeal representation for income-eligible individuals
- HICAP — Health Insurance Counseling & Advocacy Program 1-800-434-0222 | Free, unbiased Medi-Cal and Medicare counseling from certified volunteers
- OC Community Resources — Aging & Disability Services (714) 480-6450 | Referrals to care navigation and benefits counselors for OC seniors and adults with disabilities
- California State Hearings Division 1-800-952-5253 | Request your State Fair Hearing to challenge any Notice of Action
If Benefits Are Reduced or Terminated: Private Home Care as a Bridge
When Medi-Cal is reduced or terminated, many OC families turn to hourly private in-home care to bridge the gap during the appeal process.
The hardest practical consequence of a Medi-Cal termination notice is the gap it creates in daily care. If your loved one currently receives IHSS hours, in-home personal care, or other Medi-Cal-funded support services, those services may stop when the termination takes effect — unless you have Aid Paid Pending in place. Even with Aid Paid Pending, the appeal process can take weeks or months to resolve.
For Orange County families facing a care gap, private in-home care is the most common and flexible bridge. At Home VA Staffing (AHVA) provides non-medical in-home care throughout Orange County with no Medi-Cal approval required. Services include:
- Personal care: Bathing, grooming, dressing, toileting, and hygiene assistance
- Companionship care: Meaningful conversation, activities, supervision, and emotional support
- Respite care: Temporary hourly, daily, or weekly relief for family caregivers
- Dementia and memory care: Structured routines and safe supervision for loved ones with Alzheimer’s or other dementias
Many families begin with just 4–8 hours per week during the appeal window, then adjust their care plan as the situation resolves. Private care begins when you are ready — no waiting period, no benefit approval, no eligibility forms.
10-Step Medi-Cal NOA Response Checklist
Quiz: Do You Know Your Medi-Cal Notice of Action Rights?
1. As of January 1, 2026, what is the individual countable asset limit for Medi-Cal in California?
2. Your primary home is considered a Medi-Cal asset. True or false?
3. To keep your benefits during an appeal (Aid Paid Pending), you must request a hearing within how many days of the NOA mailing date?
4. Which of the following IS a countable Medi-Cal asset in 2026?
5. What is the maximum time window to request a State Fair Hearing after receiving an NOA?
Frequently Asked Questions About Medi-Cal Notices of Action in 2026
Need Home Care While Your Medi-Cal Appeal Is Pending?
At Home VA Staffing provides hourly and daily private in-home care across Orange County — no Medi-Cal approval required. We can help keep your loved one safe and supported while you navigate the appeal process.
Talk to Our Team: (213) 326-7452
