Yes, Social Security retirement and SSDI generally count as income for Medi-Cal, but how much of it counts — and whether it will push you over the limit — depends on which Medi-Cal category you fall under. Adults under 65 apply through the MAGI rules, which count the full gross benefit. Seniors and people with disabilities apply through Non-MAGI rules, which allow deductions that lower the countable amount. SSI recipients skip the income test entirely and receive Medi-Cal automatically.
How MAGI Medi-Cal Counts Your Social Security Check
Most Californians under 65, along with children and pregnant women, qualify for Medi-Cal through the Modified Adjusted Gross Income standard. Under federal rules at 42 CFR § 435.603, MAGI eligibility uses the same income-counting methods as the IRS with a few exceptions.1eCFR. 42 CFR 435.603 – Application of Modified Adjusted Gross Income (MAGI) The biggest one for Social Security recipients: Medi-Cal counts your entire gross benefit, including the portion that would not be taxable on your federal return.2Centers for Medicare & Medicaid Services. Building MAGI Knowledge Part 2 – Income Counting
This surprises many applicants. A single filer whose only income is Social Security usually owes no federal tax, because the taxable share of the benefit drops to zero at lower incomes. MAGI Medi-Cal ignores that treatment and adds the full check to household income. If your gross SSDI is $1,500 a month but only $1,325 hits your bank after the Medicare Part B premium comes out, the state still counts $1,500.
SSI is the one Social Security Administration benefit MAGI does not count. If you receive both SSI and a small SSDI check, only the SSDI portion goes into household income.2Centers for Medicare & Medicaid Services. Building MAGI Knowledge Part 2 – Income Counting
2026 MAGI Income Limits
California sets MAGI Medi-Cal eligibility at 138 percent of the federal poverty level. For 2026, the annual limits are:3DHCS – CA.gov. Qualify – Medi-Cal
- 1 person: $21,597 (about $1,800 per month)
- 2 people: $29,187 (about $2,432 per month)
- 3 people: $36,777 (about $3,065 per month)
- 4 people: $44,367 (about $3,697 per month)
- Each additional person: add $7,590
Household size is based on your federal tax filing status, not just who lives with you. If you file taxes, your household includes you, a spouse filing jointly, and anyone you claim as a dependent. If you don’t file, it includes your spouse and children under 19 living with you.4DHCS – CA.gov. DHCS Guide for Calculating MAGI Medi-Cal Individual Household Size A larger household means a higher limit, so counting correctly can decide the case.
How Non-MAGI Medi-Cal Counts Social Security for Seniors and People with Disabilities
If you’re 65 or older, blind, or have a qualifying disability, you likely fall under Non-MAGI rules instead. The main pathway is the Aged and Disabled Federal Poverty Level program, governed by Welfare and Institutions Code § 14005.40.5California Legislative Information. California Code WIC 14005.40 Non-MAGI programs treat Social Security retirement and SSDI as unearned income, but they allow deductions that MAGI does not.
The first is a $20 per month general income exclusion on unearned income.6Social Security Administration. POMS HI 03020.050 – Unearned Income Exclusions The state also deducts any health insurance premiums you pay, including Medicare premiums.7DHCS – CA.gov. PUB 10 Non-MAGI Medi-Cal So a $1,600 Social Security benefit with a $185 Part B premium becomes $1,395 in countable income after both deductions. That is the figure the state compares against the program limit.
If your countable income lands under the A&D FPL limit after those deductions, you get full-scope Medi-Cal with no monthly cost. That structure makes Non-MAGI more forgiving than MAGI for people whose checks put them close to the line.
The Asset Test
Non-MAGI programs also look at assets. As of January 1, 2026, California reinstated asset testing for older adults and people with disabilities. The property limit is $130,000 for one person, plus $65,000 for each additional household member.8DHCS – CA.gov. Medi-Cal Help Center Countable assets include bank accounts, stocks, and rental properties. Your primary home and one vehicle are typically excluded. You report these when you apply and again at renewal. MAGI Medi-Cal has no asset test.
What Happens If Your Social Security Puts You Over the Limit
If your income exceeds the A&D FPL limit but you still need help paying medical bills, the Aged, Blind, and Disabled Medically Needy program (ABD-MN) is available. It works like a monthly deductible called a share of cost.
Your share of cost equals your countable monthly income, minus the Maintenance Need Level for your household size, minus any health insurance premiums you pay.9CA.gov. Share of Cost (SOC) The Maintenance Need Level for a single person living alone is $600 per month. If your countable income is $1,900 and you pay no other premiums, your share of cost is $1,300. You have to incur $1,300 in medical expenses in a given month before Medi-Cal begins paying. A high share of cost makes this impractical for routine care, but it still protects against catastrophic bills.
Automatic Medi-Cal for SSI Recipients
Supplemental Security Income sits in its own category. In California, receiving even a dollar of SSI automatically qualifies you for Medi-Cal, with no separate application and no share of cost.10DHCS – CA.gov. Medi-Cal Eligibility Procedures Manual The Social Security Administration sends enrollment data straight to the Department of Health Care Services, and coverage begins without extra paperwork.
Because SSI is already a needs-based program with strict income limits, approval counts as proof that you meet Medi-Cal’s financial rules. The SSI payment itself is never counted as disqualifying income. In 2026, the federal SSI amount for an eligible individual is $994 per month, and California’s State Supplementary Payment brings the total to $1,626.07.11Social Security Administration. SSI Federal Payment Amounts for 2026 Your Medi-Cal continues as long as your SSI does.
If You Lost SSI Because of a Cost-of-Living Raise, Read This
A common trap: Social Security’s annual cost-of-living adjustment nudges your check up just enough to knock you off SSI, and you lose the automatic Medi-Cal that came with it. The Pickle Amendment, written into 42 U.S.C. § 1396a, exists to prevent that.12Office of the Law Revision Counsel. 42 USC 1396a – State Plans for Medical Assistance
If you once received both SSI and Social Security in the same month, and you lost SSI because your Social Security amount rose, California must subtract every COLA increase you’ve received since the last month you were eligible for both. The state then asks whether your income, stripped of those COLAs, would still qualify you for SSI. If yes, you keep Medi-Cal with no share of cost, even though your actual check has grown over the years.
The Department of Health Care Services runs an annual screening to find people who may qualify. It sends notices to potentially eligible individuals, who then have 30 days to contact their county welfare office and request a Pickle determination.13California Department of Health Care Services. Lynch V. Rank (Pickle) – Tickler System (Information Letter I 23-14) If you think you qualify and haven’t received a notice, ask your county office to run the calculation.
Reporting Changes to Your Social Security
Whenever your Social Security amount changes, whether from a COLA, a recalculation, or a new benefit, you have 10 days to report it to your county welfare office.14DHCS – CA.gov. Update Your Information Not reporting can trigger an overpayment the state later tries to recover. It can also cost you coverage you would have qualified for under a different category once the amount shifted.