Introduction
Just when you think you understand Medicaid, the details change. Financial eligibility requirements, allowances and limits are all updated on an annual basis. This includes income eligibility criteria for nursing home coverage and long-term care at home, protection allowances for non-applicant spouses, and home equity interest limits for homeowners who need Medicaid. To make things more complicated, the changes happen all over the calendar.

When Medicaid’s Eligibility Income Limits Change

Medicaid’s eligibility income limits are updated on an annual basis in every state for the programs relevant to seniors – Nursing Home Medicaid, Home and Community Based Services (HCBS) Waivers, and regular state Medicaid, also known as Aged, Blind and Disabled (ABD) Medicaid. Most of these updates happen on Jan. 1, but not all of them. California and Illinois, for example, update their income limits in April. Florida updates Nursing Home Medicaid and HCBS Waivers income limits on Jan. 1, but changes the ABD Medicaid income limit in April.

These income limits are based on federal guidelines which are also updated annually – the Federal Benefit Rate (FBR) for Social Security and Supplemental Security Income, and the Federal Poverty Level (FPL).

In most states in 2026, the individual income limit for Medicaid’s nursing home coverage and HCBS Waivers was updated on Jan. 1 to $2,982/month. This is 300% of the 2026 Federal Benefit Rate (FBR). The individual income limit for ABD Medicaid in most of these states is $994/month, which is 100% of the FBR. The 2026 Federal Poverty Level (FPL) is $15,960/year, which is $1,330/month. Some states use this exact figure as an income limit for Medicaid programs, others use a percentage of it. This search tool can help you find the exact income limits for a specific situation, or you can contact one of our Certified Medicaid Planners.

It should be noted that some states have no set eligibility income limit for their nursing home coverage. However, Nursing Home Medicaid beneficiaries in all states are required to give almost all of their income to the state to help cover the cost of care.

When Medicaid’s Eligibility Asset Limits Change

Medicaid’s eligibility asset limits are NOT updated on an annual basis in 47 states and Washington, D.C. The exceptions are Michigan, South Carolina and Arkansas.

In most states in 2026, the individual asset limit for Nursing Home Medicaid, HCBS Waivers and ABD Medicaid is $2,000. In Michigan, the individual asset limit in 2026 for all three programs is $9,950, a number that is based on the Supplemental Security Income asset limit. In South Carolina and Arkansas, the ABD Medicaid individual asset limit is also $9,950, but the individual asset limit for nursing home Medicaid and HCBS Waivers is $2,000. Since the Supplemental Security Income asset limit is updated on an annual basis, it’s assumed Medicaid’s $9,950 asset limits will also be updated annually.

Again, there are some states with significantly different asset limits. In California, the individual asset limit for all three Medicaid long-term care programs is $130,000. In New York, the individual asset limit is $32,396 for all three programs.

When Medicaid’s Maintenance Needs Allowance Limits Change

Married Nursing Home Medicaid or HCBS Waiver beneficiaries with a spouse not enrolled in Medicaid can transfer some or all of their income to that spouse so they don’t live in poverty. This is known as the Monthly Maintenance Needs Allowance (MMNA). The amount beneficiaries can transfer changes annually. It also varies by state and the couple’s financial situation.

The federal government sets annual maximum and minimum limits for the MMNA, but it does not set them at the same time of year. The Maximum MMNA is updated on Jan. 1 and is currently $4,066.50/month. The Minimum MMNA is updated on July 1 and it is currently $2,643.75/month in all but two states. The exceptions are Alaska (where the Minimum MMNA is $3,303.75) and Hawaii ($3,040).

• As of Feb. 2026, there are 14 states that use $4,066.50/month as the only MMNA figure. In these states, Medicaid beneficiaries are allowed to transfer up to $4,066.50/month of their income to their spouse not on Medicaid, known as the community spouse. Essentially, the beneficiary spouse transfers as much of their income as needed to push the community spouse’s monthly income up to $4,066.50. For example, if the community spouse has an income of $1,000/month, the Medicaid beneficiary spouse can transfer $3,066.50/month of their income to the spouse. These 14 states are Alaska, California, Georgia, Hawaii, Illinois, Iowa, Louisiana, Mississippi, Nevada, New York, Oklahoma (rounds up to $4,067), South Carolina, Texas and Wyoming, and Washington, D.C. also follows these guidelines.

• There are 33 states that use a Minimum MMNA of $2,643.75 or $2,644 and a Maximum MMNA of $4,066.50. This means Medicaid beneficiaries can transfer somewhere between $2,643.75/month and $4,066.50/month of their income to the community spouse. The amount fluctuates depending on the couple’s financial situation and the community’s spouse’s “shelter costs,” which are discussed more below.

• There are 3 states that don’t fit into either category. Alabama and North Dakota use one standard figure for their MMNA, but it’s $2,643.75 for Alabama, and $2,644 for North Dakota, as opposed to the $4,066.50 used by other states with just one standard figure. And Wisconsin uses a Maximum MMNA of $4,066.50, but a Minimum MMNA of $3,525.

It’s important to note that the MMNA only applies to Nursing Home Medicaid and HCBS Waivers. It does not apply to ABD Medicaid.

Housing Allowance

In states that use both a Minimum and a Maximum MMNA, the community spouse is always entitled to have a monthly income that matches the Minimum MMNA. They may be entitled to more (up to the state’s Maximum MMNA) if their monthly shelter and utility costs (rent, mortgage, property taxes, insurance, heat, water, electricity, etc.) surpass the Monthly Housing Allowance, which is currently $793.13/month (some states round up to $794/month). However, that figure is updated on an annual basis on July 1.

When Medicaid’s Home Equity Interest Limits Change

Homes owned by Medicaid applicants can be exempt from the asset limit, as long as they meet certain stipulations. Many of these are related to the home equity interest of the applicant. To be clear, home equity interest is the percentage of the home’s equity value owned by the applicant minus any outstanding debt. In most states in 2026, the home equity interest limit is $752,000. The exceptions are California, where there is no home equity interest limit, and nine states where the limit is $1,130,000 – Alabama, Colorado, Connecticut, Hawaii, Maine, Massachusetts, New Jersey, New York and Washington.

Here’s how it works. If a Medicaid applicant will remain living in their home to receive their long-term care benefits via a Home and Community Based Services (HCBS) Waiver, the home is exempt as long as the applicant meets the state’s home equity interest limit. The home can also be exempt if the Medicaid applicant does not live there but files an intent to return document with their local Medicaid agency AND they meet their state’s home equity interest limit. It should be noted that the home equity interest limit only applies to Nursing Home Medicaid and HCBS Waivers. It does not apply to ABD Medicaid.

To be clear, there are other ways the home can be exempt that are not impacted by the home equity interest limit. Click here for more on home ownership and Medicaid eligibility.

When Medicaid’s Community Spouse Resource Allowance Limits Change

As the name suggests, the Community Spouse Resource Allowance (CSRA) is a spousal protection, like the Minimum Monthly Needs Allowance discussed above. Also like the MMNA, the CSRA is revised on a regular basis and it does not apply to ABD Medicaid, only to Nursing Home Medicaid and HCBS Waivers.

Medicaid considers the assets of married couples to be jointly owned, so any asset owned by either spouse can be counted toward the asset limit for both spouses. However, when only one spouse in a married couple is applying for Medicaid, the non-applicant or community spouse is allowed to keep assets well beyond the limit for the applicant spouse. In most states in 2026, the CSRA is $162,660, which means the community spouse can keep up to $162,660 worth of the couple’s assets. The individual asset limit for the applicant, on the other hand, is just $2,000 in most states in 2026.

The CSRA is updated every year on Jan. 1. The exact amount the community spouse is allowed to keep using the CSRA depends on the couple’s financial situation and the state.

When Medicaid’s Medically Needy Income Limits Change

The updates for Medicaid’s Medically Needy Income Limits (MNIL) are scattered across the calendar. Some states have had the same MNIL for years, like Florida. Other states update it on an annual basis, but not necessarily on Jan. 1.

The MNIL is used with the Medically Needy Pathway, which is a way for people who are over their income limit to become eligible. They do this by spending their excess income on medical bills during a specified “spend down” period, which is between one and six months, depending on the state. The amount they have to spend down during that time period is determined by the MNIL and their income. Once they reach the spend down amount, Medicaid will cover their medical expenses for the remainder of the spend down period, so the entire process works like an insurance deductible.

When Medicaid’s Penalty Divisors Change

Medicaid uses the Look-Back Period to make sure applicants don’t simply give away their assets to meet their asset limit. In most states, the Look-Back Period is 60 months (five years). This means the state will “look back” into the applicant’s financial history for the 60 months prior to their application date to make sure they have not given away any assets or sold them at less than fair market value.

If an applicant has violated the Look-Back Period, their application will be denied and they will face a penalty period of ineligibility. The length of this penalty period is determined by dividing the value of the violating assets by the state’s Penalty Divisor, which is the average cost of private pay nursing home care per month in the state. States update this figure on an annual basis, but not always on Jan. 1 and not always every year. Ohio updates its Penalty Divisor every two years, and the current figure of $7,787/month was last set on Sept. 1, 2024, while neighboring Pennsylvania updates its Penalty Divisor every year, and it was set to to $12,811.50/month on Jan. 1, 2026.