CW: Poverty
Cynde Soto is a quadriplegic who requires round-the-clock care. She has been on Medi-Cal, the state’s Medicaid program for most of her life. She recently received an inheritance of approximately $8,000, which has helped cover her daily expenses. However, she would lose her Medicaid coverage under Gov. Gavin Newsom’s proposal.
Newsom has proposed reinstating a $2,000 asset limit for individuals, including savings accounts and property other than a home and a car, and $3,000 for couples to qualify for Medi-Cal. Anyone 65 and older, or disabled, who exceeds that limit would be ineligible. Newsom also proposes capping the amount of home care Medi-Cal members like Soto can receive.
In proposing the plan, Governor Newsom stated that California has a “spending problem” and must make “difficult choices” to address the state’s $12 billion shortfall, which he linked in part to rising Medi-Cal expenditures. According to the governor’s budget plan, his proposal will save the state $94 million this fiscal year and more than $500 million the following year. However, advocates argue that it is really hard to survive in California with only $2,000 in assets. Rent frequently exceeds that amount, and medical bills not covered by insurance quickly add up.
Unfortunately, asset limits are a nationwide problem. Approximately eight million Americans receive Supplemental Security Income, or SSI, which often means someone eligible for Medicaid. The program was created in 1972 to help disabled and elderly people stay out of poverty. However, the average monthly SSI benefit is just $983.
SSI beneficiaries are currently limited to having no more than $2,000 in assets at any given time to continue receiving monthly payments. Under regulations that haven’t changed since 1989, married couples are limited to $3,000. Accounting for inflation, the asset limit would be approximately $10,000 today.
In 2023, I received a letter informing me that I had too many assets to qualify for SSI, which could have jeopardized my Medicaid coverage. I received the letter because I had $2,034 in my bank account because I hadn’t paid my rent yet. The Social Security Administration wanted to take away my benefits because I was a mere $34 over the asset limit.
For people with disabilities and chronic illnesses, it can be even more expensive to live. According to the National Disability Institute, researchers estimate that households containing an adult with a disability require, on average, 28 percent more income (or an additional $17,690 a year for a family at the median income level) to obtain the same standard of living as a comparable household without a member with a disability.
Wheelchairs, walkers wheelchair-accessible vans, prescriptions, bath and shower chairs, enteral formula, specialized beds, and hearing aids are just some of the things that are necessary for disabled people. Insurance often doesn’t cover all of the supplies and equipment someone needs. Getting insurance to cover certain things can require lots of paperwork, phone calls, and time.
In other cases, asset limits can prevent people from getting married or cause them to divorce. Medicaid counts a couple’s assets as belonging to both of them.
Keeping disabled people in poverty is antiquated. Governor Newsom’s proposal will make it even more difficult for disabled Californians to live. Nobody should be forced to live in poverty.
Sources:
Goodman, Nanette, et al. “The Extra Costs of Living with a Disability in the U.S. — Resetting the Policy Table.” National Disability Institute, National Disability Institute, Oct. 2020, http://www.nationaldisabilityinstitute.org/wp-content/uploads/2020/10/extra-costs-living-with-disability-brief.pdf.
Hwang, Kristen. “‘I’m Really Scared’: Elderly and Disabled Californians with More than $2,000 Could Lose Medi-Cal.” CalMatters, CalMatters, 29 May 2025, calmatters.org/health/2025/05/medi-cal-assets-newsom-health-insurance/.
LaGorce, Tammy. “Seeking Marriage Equality for People with Disabilities.” The New York Times, The New York Times, 25 Aug. 2022, https://www.nytimes.com/2022/08/25/style/marriage-equality-disabled-people.html.
Romig , Kathleen, et al. “The Case for Updating SSI Asset Limits.” Center on Budget and Policy Priorities, Center on Budget and Policy Priorities, 25, July 2023, http://www.cbpp.org/research/social-security/the-case-for-updating-ssi-asset-limits?fbclid=IwAR0wZj-zM_VqbPoQ4RV3WZUbOBCKVbnxXlV9lJeWo4GLEVAx2EomA5klzoo_aem_AfEqv7yxyHvw-DLrwMkFZ4LovFDDWokEDXSN5qdX6LwdCd85JZbF0gQkswCdVv1LpVA.
Shapiro, Joseph. “This Disabled Woman Built a Career. A Federal Program That Helped Now Penalizes Her.” NPR, NPR, 2 Oct. 2024, http://www.npr.org/2024/10/01/g-s1-25453/social-security-ssi-disabilities-work-outdated.