Medicaid Asset Limits by State (2026)

Quick answer: does Medicaid have an asset limit in 2026?

It depends on which Medicaid pathway applies to you. Most Medicaid enrollees, including ACA expansion adults, children, and pregnant women, face no asset test at all in 2026; eligibility rests on income alone. Aged, Blind and Disabled Medicaid and Nursing Home or HCBS Medicaid still apply a federal asset limit of $2,000 for an individual (higher in California, New York, and a few other states).

What counts toward the Medicaid asset limit in 2026

Countable assets in 2026 include cash, checking and savings account balances, certificates of deposit, stocks, bonds, mutual funds, second vehicles, second homes, and most non-retirement investment accounts. Caseworkers add up the countable total on the date of application, then compare it against the limit for the applicant's Medicaid category. Retirement accounts count in some states and are exempt in others, so a 401(k) or IRA balance can change the outcome of an application depending on where the applicant lives.

Exempt assets never count against the 2026 limit no matter the state. The primary home is exempt up to the home equity limit described below, one vehicle of any value is exempt, household goods and personal effects are exempt, a pre-paid burial plot or irrevocable funeral trust up to a state-set cap is exempt, and term life insurance is exempt regardless of face value. Whole life insurance is exempt only if the combined face value stays under $1,500.

• Countable: cash, bank accounts, CDs, stocks, bonds, second vehicles, second homes, most non-retirement investment accounts
• Exempt: primary home (up to the equity limit), one vehicle, household goods, a pre-paid burial trust up to a state cap, term life insurance, whole life insurance under $1,500 face value

MAGI Medicaid has no asset test in 2026

MAGI Medicaid covers the large majority of Medicaid enrollees nationwide in 2026: children through CHIP-funded Medicaid, pregnant women, parents and caretaker relatives under state income limits, and adults covered by ACA expansion in the 40 states plus DC that adopted it. None of these groups face a savings or property test; a caseworker checks Modified Adjusted Gross Income against the state's percentage of the federal poverty level and stops there.

The MAGI versus Non-MAGI split matters in 2026 because most people who ask about a Medicaid asset limit do not actually need to worry about one. The asset test only applies to Non-MAGI pathways: primarily Aged, Blind and Disabled Medicaid, Nursing Home and HCBS waiver Medicaid, and Medicare Savings Programs for dual-eligible beneficiaries. The 10 states that have not expanded Medicaid under the ACA (Alabama, Florida, Georgia, Kansas, Mississippi, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming) still follow MAGI rules, with no asset test, for the populations they do cover in 2026.

2026 asset limits for Aged, Blind and Disabled and Nursing Home Medicaid

Aged, Blind and Disabled (ABD) Medicaid and Nursing Home Medicaid share the same federal starting point in 2026: $2,000 in countable assets for an individual and $3,000 for a couple, both figures set by the Supplemental Security Income program and unchanged since 1989. HCBS waiver programs, which pay for home health aides, adult day care, and assisted living support so an enrollee can avoid a nursing facility, use the same $2,000 individual limit in most states.

Medicare Savings Programs sit in between. QMB, SLMB, and QI all use the same 2026 resource limit of $9,950 for an individual and $14,910 for a couple. A primary home and one vehicle are exempt from the Medicare Savings Program test just as they are for ABD Medicaid. Connecticut, Delaware, Louisiana, Maine, and Mississippi waive the asset test for Medicare Savings Programs entirely in 2026.

How five states compare on 2026 Medicaid asset limits

Federal law sets the $2,000 individual floor, but states can raise it for Non-MAGI Medicaid, and five states illustrate how far that discretion can stretch in 2026.

Spousal protections: CSRA and home equity limits in 2026

Federal spousal impoverishment rules protect the non-applicant spouse when only one partner in a married couple needs Nursing Home or HCBS Medicaid. In 2026, the Community Spouse Resource Allowance (CSRA) lets the non-applicant spouse keep between $32,532 and $162,660 in countable assets, an increase from the 2025 maximum of $157,920. States choose where in that range to set their own standard, and the applicant spouse still must bring personal countable assets down to $2,000.

The home equity limit works separately from the CSRA. In 2026, states must exclude at least $752,000 in home equity, and states may raise that exclusion up to $1,130,000; twelve states and DC use the higher figure. California does not apply any home equity limit for Nursing Home or HCBS Medicaid in 2026. The home stays exempt entirely while the community spouse or a dependent relative continues to live there, regardless of its market value.

What happens if you exceed the Medicaid asset limit in 2026

Assets above the 2026 limit do not permanently disqualify an applicant; most states allow a spend-down, where the applicant pays down countable assets on allowed expenses such as medical bills, home repairs, or a pre-paid burial plan, until the total falls under the limit. Caseworkers also review a 60-month look-back period on Nursing Home and HCBS Medicaid applications, checking for asset transfers or gifts made below fair market value; transfers inside that window can trigger a penalty period during which Medicaid will not pay for long-term care.

Applicants who expect to exceed the 2026 limit have several legitimate options. An elder law attorney can structure a Medicaid-compliant annuity that converts a lump sum into an income stream, which is not a countable asset. Married couples can maximize the CSRA before applying. Some states offer a Qualified Income Trust (Miller Trust) for income above the limit, a separate tool from asset planning. Families should also compare Medicare Savings Program limits, since a person who does not qualify for full Medicaid may still qualify for QMB, SLMB, or QI to cover Medicare premiums and cost-sharing.

• Spend down countable assets on medical bills, home repairs, or a pre-paid burial trust
• Work with an elder law attorney on a Medicaid-compliant annuity or trust
• Maximize the Community Spouse Resource Allowance if married
• Check Medicare Savings Program (QMB, SLMB, QI) limits, which run far higher than ABD Medicaid
• Confirm the current state-specific limit before making any transfer, since a 60-month look-back applies

What is the Medicaid asset limit for 2026?

It depends on the pathway. MAGI Medicaid, which covers most children, pregnant women, and ACA expansion adults, has no asset limit in 2026. Aged, Blind and Disabled Medicaid and Nursing Home or HCBS Medicaid use a federal floor of $2,000 for an individual and $3,000 for a couple, though California, New York, and other states set higher limits.

Does Medicaid count my house as an asset in 2026?

Usually not. Your primary home is exempt from the Medicaid asset test up to a home equity limit of $752,000 in most states in 2026, rising to $1,130,000 in twelve states and DC. California applies no home equity limit at all. The home stays exempt while a spouse or dependent relative continues living there.

What is the difference between MAGI and Non-MAGI Medicaid asset rules?

MAGI Medicaid, covering ACA expansion adults, children, and pregnant women, never applies an asset test in any state; only income matters. Non-MAGI Medicaid, covering Aged, Blind and Disabled applicants and Nursing Home or HCBS Medicaid, applies a federal asset floor of $2,000 for an individual in 2026, with some states setting a higher limit.

How much can a spouse keep if their partner needs nursing home Medicaid in 2026?

Under the 2026 Community Spouse Resource Allowance, the non-applicant spouse can keep between $32,532 and $162,660 in countable assets, depending on the state and the couple's total resources. The applicant spouse must still bring personal countable assets down to $2,000 to qualify for Nursing Home or HCBS Medicaid.

Which states have higher Medicaid asset limits than the federal floor in 2026?

California reinstated a Non-MAGI asset limit of $130,000 for an individual on January 1, 2026, plus $65,000 per additional household member. New York sets its Non-MAGI resource limit at roughly $33,038 for an individual. Most other states, including Texas and Florida, follow the federal floor of $2,000 in 2026.

What happens if I have too many assets for Medicaid in 2026?

Most states allow a spend-down: paying countable assets toward medical bills, home repairs, or a pre-paid burial plan until the total falls under the limit. Nursing Home and HCBS Medicaid applications also review a 60-month look-back period for asset transfers, and transfers below fair market value can trigger a penalty period.

Do Medicare Savings Programs have asset limits in 2026?

Yes, but the limits run higher than ABD Medicaid. QMB, SLMB, and QI all use the same 2026 resource limit of about $9,950 for an individual and $14,910 for a couple. Connecticut, Delaware, Louisiana, Maine, and Mississippi waive the asset test for these programs entirely.

What is the Medicaid look-back period for asset transfers?

For Nursing Home and HCBS Medicaid, most states review a 60-month (5-year) look-back period on the application date, checking for gifts or asset transfers made below fair market value. Transfers inside that window can trigger a penalty period during which Medicaid will not pay for long-term care services.