For now, almost nothing. The unspent money counts as part of her savings, but the limit is high enough that a few hundred dollars saved over time won’t affect her coverage. It only becomes an issue if her total countable assets approach the limit.
Why Does She Keep $35 Every Month?
This is called the personal needs allowance. Medi-Cal lets her keep $35 a month, and the rest of her income goes to the facility as her monthly cost of care. The money is hers to use for things not covered by Medi-Cal, such as haircuts, clothing, toiletries, a phone, or snacks.
Does Saved Money Count Against Her?
Yes, savings count, but the limit has changed. As of January 1, 2026, California limits countable assets to $130,000 for an individual. Her bank balance counts, but if her other countable assets are modest, savings from the allowance won’t cause a problem.
When Could It Matter?
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She has other savings. If her countable assets are close to $130,000, even small balances could push her over.
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She holds the money long term. Balances can build for years. A few hundred dollars a year is minor, but reviewing the account yearly is wise.
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She passes away. Whatever remains goes to her estate, which may be subject to Medi-Cal estate recovery.
Can I Spend the Money on Her Behalf or Give It as a Gift?
You can spend it on her behalf, as long as it’s for her benefit. Giving it away as a gift is a different matter, and it can cause problems.
Spending It For Her Is Fine.
The $35 is hers, so you can use it to buy things she needs or enjoys. Examples include:
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Clothing, shoes, and slippers
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Toiletries, hair care, and personal items
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Haircuts, manicures, and salon visits
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A phone, a TV, or cable service for her room
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Snacks, books, magazines, or hobby supplies
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Hearing aid batteries, glasses, or other items Medi-Cal doesn’t cover
If you’re handling her money as her agent or representative, you have a legal duty to use it only for her. Buying things for yourself, or paying your own expenses from her account, can be treated as misuse. Keep receipts and records of everything you buy, and keep her money separate from yours.
Gifting Can Be Risky
Giving her money to a family member or friend, or sending it anywhere else without getting something of equal value in return, is called a transfer for less than fair value. Medi-Cal looks back at these transfers when someone applies for long-term care coverage, and a transfer can cause a period of ineligibility.
California is phasing in a 30-month look-back. For applications filed in October 2026, it will only review transfers made since January 1, 2026. The window will grow one month at a time until it reaches 30 months in July 2028.
Some families buy a small present for a grandchild or friend with her allowance. If it’s occasional, small, and well documented, the risk is low. If she wants to give larger gifts, talk to an elder law attorney first.
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