CA AB1785

Excludes principal and interest from 529 savings plans from asset or resources tests for Medi-Cal eligibility for applicants and beneficiaries not using MAGI-based financial methods.

Excludes qualified distributions from 529 savings accounts from income tests for Medi-Cal eligibility for all applicants and beneficiaries.

Defines "529 savings plan" as a qualified tuition program meeting Section 529 of the Internal Revenue Code requirements.

Requires the State Department of Health Care Services to obtain necessary approvals from the federal Centers for Medicare and Medicaid Services before implementation.

Implementation must be consistent with federal Medicaid law and regulations and only proceed if necessary approvals are obtained and federal financial participation is not jeopardized.