Medicaid: What it is, Eligibility, Income Limits, Benefits, Application & How to Apply

Medicaid looks simple until you learn its income limits, savings and house rules. Forms are filled with questions where people are asking, and will lose coverage if they are earning too much. While others are confused about the extra money they have in their banks.

Everyone is sharing their opinions there and many of those answers are outdated, incomplete and wrong. Therefore, we decided to break down everything about Medicaid in this guide. We will explain who qualifies and how income limits actually work.

How every state differs and what CHIP is. Apart from this, we will list the non-expansions and expansion states. Who qualifies for MAGI and Non-MAGI? If you are overwhelmed with all of these terms then stick and just read this guide.

What is Medicaid?

Medicaid is a government health insurance program that helps people with low income pay for medical care. It is available in every state but each state runs its own version. So the income limits and other rules vary depending on where you live.

The program is funded by both the federal government and the state government. The federal government provides most of the money. While each state adds its own share and manages the program. Many people confuse it with Medicare but they are not the same. Medicaid is income based whereas Medicare is for older or disabled people.

Who Qualifies for Medicaid?

There are two types of categories of people who qualify for Medicaid. It includes

1. MAGI Medicaid
2. Non-MAGI Medicaid

MAGI Medicaid

MAGI stands for Modified Adjusted Gross Income. This type is for people who qualify mainly because of low income. It usually applies to:

• Adults under 65
• Children
• Parents
• Pregnant women

MAGI Medicaid only looks at your income and household size. It does not consider savings or property. So even if you have some savings then you may still qualify if your income is below the limit.

Non-MAGI Medicaid

Non-MAGI Medicaid is for people who qualify because of age, disability, blindness or long-term care needs. Here are the people who qualify for Non-MAGI Medicaid:

• Seniors (65+)
• People with disabilities
• People needing nursing home care

Non-MAGI Medicaid checks both income and assets. The assets like savings, investments and sometimes your home. This is because these programs often cover higher-cost care.

Can I qualify for Medicaid if I have no child?

Yes, but it depends on your state. You may qualify for Medicaid without a child if you live in an expansion state. Expansion states offer Medicaid to people under 65 only on the basis of their income. So it does not matter if you have kids or not. If your income is below 138% of the FPL ( $22,000/ yr for 1 person) then you qualify for Medicaid. 

However, you cannot qualify for Medicaid if you are single in non-expansion states.

Non-expansion states only offer Medicaid to a specific number of people such as:

• Children
• Pregnant women
• Parents with very low income
• Seniors
• People with disabilities 

Childless adults often cannot qualify even if their income is very low.

Here are the ten non-expansion states in 2026:

1. Alabama
2. Florida
3. Georgia
4. Kansas
5. Mississippi
6. South Carolina
7. Tennessee
8. Texas
9. Wisconsin
10. Wyoming

Are there any work requirements for Medicaid in 2026?

Some states are starting work rules for Medicaid in 2026 but most will fully begin in early 2027. These rules come from a 2025 federal law. So adults on Medicaid expansion need to do 80 hours per month of approved activities. These can include working, volunteering, going to school or attending training programs. But ABD people, pregnant women, caregivers or young children at home are usually exempt.

What are the Income Guidelines for Medicaid in 2026?

The income guidelines differ for MAGI and NON-MAGI groups. MAGI counts your income whereas NON-MAGI counts both income and assets. The government looks at your Modified Adjusted Gross Income to see if you qualify. This is basically your taxable income from your tax return plus a few extra types of income.

So here’s what they count:

• Wages and salaries from your job
• Self-employment income
• Unemployment benefits
• Social Security benefits 
• Alimony received (for older divorces if taxable)
• Tax-exempt interest

Here is what usually doesn’t count:

• Child support received
• Gifts or inheritances
• Loans or grants for education
• Benefits like SNAP or WIC

Asset Limits for NON-MAGI

The government counts the assets of NON-MAGI people.

Here is what they usually count:

• Cash and savings accounts
• Stocks, bonds, and investments
• Property other than your primary home (varies by state)
• Vehicles (sometimes)

They don’t count:

• Your primary home  
• Personal belongings
• Some prepaid funeral plans

Non-MAGI programs are stricter. Because they cover expensive care like nursing homes or long-term disability services. 

Income Limits for MAGI Medicaid in Expansion States 2026

The federal income limit for Medicaid in 2026 is 138% of the federal poverty line. These income limits are 15% higher in Alaska and 25% higher in Hawaii.

So here is the detailed income limit for every household size in expansion states for MAGI people:

Income Limits for NON-MAGI Medicaid in 2026

There are two categories in Non-MAGI Medicaid such as ABD and LTC people. ABD people are aged, blind and disabled who live in a community. They qualify on the basis of their ABD. Whereas long term care (LTC) people are those who need daily support. 

They need help with personal care, medical supervision and even other tasks. LTC has higher income limits than ABD though they differ in some states. 

Income Limits For ABD Medicaid

Here are the income limits for ABD single and couples in specific states:

Alaska has a higher income limit at $1,795/month. If you are a California resident then you need to look at the Medi-Cal income limits. We have covered income limits for each group and category there.

Income Limits for LTC Medicaid

The standard income limit for long term care is 300% of FBR in most states. It is around $2,982 for singles and $5,964/month for married individuals.

These income limits vary in some states such as:

If My Spouse Goes to a Nursing Home Then How Does Medicaid Protect Me?

Medicaid has rules to protect the healthy spouse if one goes to LTC and it is called spousal impoverishment protections. The Community Spouse Resource Allowance (CSRA) allows the spouse staying at home to keep more assets. So they don’t fall into poverty. The maximum amount they can keep is $162,660 in 2026.

There’s also the Minimum Monthly Maintenance Needs Allowance (MMMNA) for a healthy spouse. MMMNS makes sure that he/ she has enough income for living expenses. If their income is low then they can receive a portion of the spouse’s income who is in care. The maximum monthly amount for a healthya spouse is $4,066.50 in 2026.

I’m slightly over the income limit, Is there any way to still qualify?

Yes, you can still qualify if you follow the Spend Down trick. Medicaid allows you to reduce your countable assets by using the excess funds for certain approved expenses. For example, you can pre-pay for a funeral or burial plot, buy a hearing aid or power wheelchair. 

You can also pay off a mortgage or car loan (since one home and one vehicle are usually exempt). Plus, you can also stock up on non-perishable toiletries and personal care items.

What are the Medicaid income Limits for Pregnant Women?

Pregnant women often have higher medicaid income limits than others. They usually fall between 138% to 213% FPL. For example, California has up to 213% FPL. But Alaska & Washington have 230% and 215% FPL respectively.

Here are the medicaid income limits in some states for a household os two (pregnant women & unborn child):

What are the Income Limits of CHIP for Children?

CHIP stands for Children’s Health Insurance Program. It provides health coverage for children from low- to moderate-income families. So if your income is above MAGI income limits then your child may qualify for CHIP. But it often requires a small monthly premium. 

CHIP does not have an asset test. It means your savings and property are not counted but income matters. This is a form of Medicaid but only for children and has a different name in some states.

Look at the table below to find the income limits for CHIP in 2026:

Do my savings or my house count against me in Medicaid?

There are no asset limits for MAGI Medicaid but those who qualify for NON-MAGI Medicaid have to meet the asset limits. The asset for a single person is $2,000 and $3,000 for married ones in most states. However, the asset differs in many states such as:

Can I give my house or savings to my kids now so Medicaid doesn’t take them later?

This is a common trap because Medicaid has a 5-year look-back period (30 months in California). If you give away assets for less than their value during this time. Then you could lose benefits for a while. Some people use strategies like a MAPT or a Life Estate. These can protect your assets but they must be set up years before you need care.

A 2026 update in California says transfers made before January 1, 2026 are usually safe. Transfers after that date may face new penalties. So always check your state’s rules and speak to a Medicaid planner before making any property decision.

What are the Benefits of Medicaid?

Medicaid provides many benefits and services but it may vary by state. However, there are some mandatory benefits that every state has to offer. So here is what Medicaid covers:

• Mandatory Medicaid benefits:
• Inpatient hospital services
• Outpatient hospital services
• Early and periodic screening, diagnostic and treatment services (EPSDT)
• Nursing facility services
• Home health services
• Physician services
• Rural health clinic services
• Federally qualified health center services
• Laboratory and X-ray services
• Family planning services
• Nurse midwife services
• Certified pediatric and family nurse practitioner services
• Freestanding birth center services (when licensed or otherwise recognized by the state)
• Transportation to medical care
• Tobacco cessation counseling for pregnant women

How to Apply for Medicaid in 2026?

You can easily apply for Medicaid but it still has a few steps. So you just have to follow this step by step guide to apply for Medicaid:

1. Check Eligibility: You need to understand the category you fall into before you apply. Are you qualified for MAGI or Non-MAGI?
2. Gather Documents: Make sure to collect all required papers to speed up the work:

• • ID and proof of citizenship 
  • Social Security numbers for everyone applying.
  • Income proof
  • Proof of residence  
  • Assets (bank statements, stocks, bonds or extra vehicles) for Non-MAGI applicants

1. Choose Application Method: You can apply online via HealthCare.gov or your state’s portal. You can also call at the HealthCare.gov Call Center at 1-800-318-2596 (TTY: 1-855-889-4325). Or use the Find Local Help features of HealthCare to get assistance. 
2. Interview: MAGI applicants usually require no interview because they verify income automatically. But Non-MAGI applicants may require a short phone or in-person meeting. It is just to review assets and medical needs. 
3. Approval and Planned Choice: You get a notice in the mail. Most states then ask you to pick a Managed Care Organization (MCO) for your health services. You have 90 days to request a Fair Hearing if denied.

Coverage isn’t permanent. You have to renew every 12 months. Some states now do Ex Parte renewals. So they check your income automatically. If they can’t verify then you must respond to the renewal notice in 30 days or risk losing coverage.

Conclusion

Medicaid is a health insurance program to help low-income people get health benefits. There are two categories of who qualify such as MAGI and NON-MAGI. MAGI includes adults, children and pregnant women. Where NON-MAGI are the ABD and LTC people.

The income limits differ for each individual category in each state. The asset limits also change in every state. Medicaid for children is known as CHIP. Pregnant women and children have high income limits. You can easily apply for Medicaid via the HealthCare website.

FAQs

I’m turning 65. Do I keep Medicaid or switch to Medicare?

Most people who already have Medicaid will need both after turning 65. Medicare becomes your primary insurance, which means it pays first. Medicaid becomes secondary. So it covers things Medicare doesn’t pay like some co-pays and long-term care.

What is D-SNP?

A D-SNP stands for Dual Eligible Special Needs Plan. It is a type of Medicare plan for people who qualify for both Medicare and Medicaid.

Do illegal immigrants get Medicaid?

No, most undocumented immigrants cannot get full Medicaid. Some states provide limited emergency Medicaid for things like childbirth or urgent hospital care.

What is the Big Beautiful Bill in Medicaid?

The Big Beautiful Bill is a nickname people use for large Medicaid funding or reform bills passed in Congress. These bills increase funding for states or add new programs under Medicaid.

What is the Medicaid data-sharing injunction?

This refers to a court order that limits how states share Medicaid data. Some states tried to share personal information for things like immigration or work verification. Courts blocked some of these practices to protect privacy and prevent wrongful denial of benefits.