What Changed with Medi-Cal in July 2025

What Is Medi-Cal and Why Is It Important?

Medi-Cal is California’s version of Medicaid — a public health insurance program that offers free or low-cost care to people with low income. It covers many services like doctor visits, lab tests, surgeries, maternity care, dental care, and mental health support.

Over 15 million people in California use Medi-Cal. That’s about 1 in 3 residents.

1. Medi-Cal Is Still Available for All Adults — For Now

Since January 2024, all low-income adults in California can get full Medi-Cal coverage — even if they don’t have legal immigration status.

But starting January 2026, the state plans to stop new sign-ups for undocumented adults because of budget problems.

So, as of July 2025, coverage continues — but changes are coming.

2. New Income Limits

To qualify for Medi-Cal, your income must be under a certain limit. As of April 2025, the new yearly income limits are:

• 1 person: up to $31,300
• 2 people: up to $42,300
• 4 people: up to $64,300

These numbers are based on 200% of the federal poverty level.

3. Renewing Medi-Cal Got Stricter

Before, many people’s Medi-Cal coverage was automatically renewed. Now, starting in July 2025, you must confirm that you still qualify. This means you may need to take extra steps to keep your coverage.

4. Mental Health Services Are Being Reduced

Although the state wanted to expand mental health and addiction care, budget cuts mean many mental health services are now being reduced. Some clinics are closing or laying off staff.

5. Telehealth Is Still Free

Good news: under a new law (AB 688), telehealth services — doctor visits by phone or video — will stay free for Medi-Cal members.

Other Important Updates:

• Starting January 2026, some undocumented adults on Medi-Cal may have to pay a $100 monthly premium.
• Starting July 2025, the state may cut dental benefits for undocumented adults age 19+.

What You Should Do

Many of these changes are still developing. Some plans were delayed or changed because of money issues.

To stay up to date, visit the official Medi-Cal website or contact your local social services office.