Medicaid Frequently Asked Questions 

What is the income limit for Medicaid in 2026?

The Medicaid income limit for 2026 depends on the type of Medicaid you are applying for and your state. For most adults in Medicaid expansion states, eligibility is based on income up to 138% of the Federal Poverty Level, which is about $21,597 per year for a single person using early-2026 guidelines. For seniors and people applying for long-term care Medicaid, most states use a monthly income cap of $2,982. Some states allow higher income through a spend-down or a Qualified Income Trust.

 

Does Medicaid count savings and assets in 2026?

It depends on the Medicaid category. MAGI Medicaid, which covers most adults and families, does not count savings, bank accounts, or other assets. However, Non-MAGI Medicaid and Long-Term Care Medicaid do count assets. In most states, the asset limit for a single applicant is $2,000. Countable assets usually include cash, investments, and additional property. Some assets are exempt, such as a primary home (within equity limits), one vehicle, and personal belongings.

 

Can I qualify for Medicaid if I own a home?

Yes, many people who own a home can still qualify. For MAGI Medicaid, home ownership does not affect eligibility. For Long-Term Care Medicaid, a primary home is usually exempt as long as the applicant’s home equity is below state limits, which range from $752,000 to $1,130,000 in 2026. A home is also typically exempt if a spouse, dependent child, or disabled child lives there.

 

What is a Qualified Income Trust (Miller Trust)?

A Qualified Income Trust (Miller Trust) is a legal trust used in certain states to help people qualify for long-term care Medicaid when their income is too high. In 2026, the income cap in most states is $2,982 per month. If your income is higher, income placed into the trust is not counted for eligibility. The funds must be used to pay care costs, and the state must be named as the beneficiary.

 

What is the Medicaid lookback period?

The Medicaid lookback period applies only to Long-Term Care Medicaid. It is a 5-year (60-month) review of your financial history. Medicaid looks for asset transfers, gifts, or property sold for less than fair market value. If an improper transfer is found, Medicaid will impose a penalty period during which they will not pay for care. This lookback period does not apply to standard MAGI Medicaid for adults and families.

 

How do I apply for Medicaid in 2026?

You can apply at any time; there is no open enrollment. Most apply online through their state Medicaid website. Adults and families can also apply through HealthCare.gov. Seniors and long-term care applicants should apply directly through their state Medicaid agency. You will usually need proof of income, household information, and identity documents.

 

How long does it take to get approved for Medicaid?

In most states, applications are processed within 30 to 45 days. Applications based on disability or long-term care can take several months because they require additional financial and medical review. Responding quickly to requests for missing documents helps avoid delays or denial. Approval timelines vary significantly by state and category.

 

Does Medicare cover nursing home or long-term care?

No. Medicare does not cover long-term custodial care. Medicare may pay for a short stay (up to 100 days) in a skilled nursing facility after a hospital stay, but only under strict conditions. Medicaid is the primary program that pays for long-term care, assisted living, and in-home care for those who meet eligibility rules.

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