What are the income limits for Michigan Medicaid in 2026?

Yes, standard Social Security benefits count as income for Medicaid eligibility. However, the exact rules depend entirely on the specific type of Social Security benefit you receive.

Types of Benefits That Count

If you receive any of the following benefits, Medicaid will include them in your monthly income calculations, even if they are not considered taxable by the IRS:

• Social Security Retirement Benefits
• Social Security Disability Insurance (SSDI)
• Social Security Survivor’s or Dependent Benefits

The Major Exception: SSI

• Supplemental Security Income (SSI) does not count as income. SSI is a separate, needs-based program for low-income individuals who are elderly, blind, or disabled. In most states, receiving SSI actually qualifies you for Medicaid automatically.

How Medicaid Evaluates Your Income

Medicaid pathways look at income in two distinct ways depending on your eligibility category:

1. MAGI Medicaid (Under Age 65 / Households): For most adults, parents, and children, eligibility is determined using Modified Adjusted Gross Income (MAGI). Under MAGI rules, your gross Social Security benefits are added directly to your household income total. (Exception: A child’s or tax dependent's Social Security check is generally excluded unless their personal income is high enough that they are legally required to file a tax return).
2. Non-MAGI Medicaid (Aged, Blind, Disabled, or Long-Term Care): If you are 65 or older, blind, or disabled, you fall into "Non-MAGI" pathways. Your standard Social Security check still counts as monthly income, but your state will also factor in an asset/resource limit (such as savings and property).

What if Your Social Security Puts You Over the Limit?

Because Medicaid is administered locally, income limits fluctuate significantly depending on your state and whether your state adopted the Affordable Care Act (ACA) Medicaid expansion. If your Social Security benefit puts you slightly over your state's threshold, you may still qualify through alternative state options like "Spend-Down" programs (Medically Needy programs) or by setting up a Qualified Income Trust (Miller Trust), depending on your local regulations.

To check the exact income limits for your household size, review the guidelines on your state's official Medicaid Agency Website.

Stricter eligibility rules, reduced noncitizen coverage, and upcoming work requirements are taking effect for Medicaid following federal legislation passed in 2025.

Noncitizen Eligibility Changes

• Effective October 1, 2026: Many lawfully present noncitizens without green cards (such as certain humanitarian immigrants, refugees, or asylum seekers) lost full federal Medicaid eligibility.
• Exceptions: Green card holders, specific pregnant individuals, children, and designated statuses like Cuban/Haitian entrants remain eligible for coverage.

Upcoming 2027 Changes

• Work Requirements: Starting January 1, 2027, non-exempt adults (typically ages 19–64) in the expansion group must average 80 hours per month of work, school, or community service.
• More Frequent Reviews: States will require eligibility redeterminations every six months instead of annually.
• Retroactive Coverage: Retroactive coverage for care received prior to enrollment will drop to 30–60 days depending on the beneficiary category.

Medicaid does not check your bank account on a continuous or daily schedule, but rather reviews your finances at specific key milestones.

When Medicaid Checks Your Bank Account

• Initial Application: Your accounts are checked when you first apply to verify that your resources meet the state's financial eligibility rules.
• Annual Renewals: Most beneficiaries must renew their eligibility once a year, prompting a yearly review of updated financial information or asset data.
• Life and Financial Changes: If you report a major change—such as an inheritance, property sale, or increase in income—the agency may re-evaluate your accounts.
• Discrepancies: If automated electronic systems flag an inconsistency, a manual review or request for bank statements can happen at any time.

How the Check Works

• Asset Verification System (AVS): For programs that require an asset test (such as for seniors, individuals with disabilities, or long-term care), states use an electronic Asset Verification System to query financial institutions for account balances. AVS shows balances and active accounts, not full daily transaction histories unless requested.
• The 60-Month Look-Back: For nursing home care or long-term services, Medicaid applies a 5-year (60-month) look-back period to review past asset transfers and large financial gifts.
• MAGI Groups: If you apply under expansion rules (such as adults aged 19–64, parents, or pregnant individuals based on Modified Adjusted Gross Income), states generally do not check bank balances or enforce an asset limit—they only look at income.

In Michigan, exempt assets for asset-tested Medicaid programs (such as long-term care or traditional Medicaid for seniors and disabled individuals) include your primary residence, one motor vehicle, and personal household belongings.

Key Exempt Assets in Michigan

• Primary Residence: Your home is generally exempt if you (or your spouse) live in it, or if you intend to return home. For a single applicant in 2026, home equity must not exceed $752,000. The equity limit does not apply if a spouse or a minor, blind, or disabled child still lives in the home.
• One Motor Vehicle: One car or vehicle used for transportation is completely exempt regardless of value.
• Personal Belongings: Household goods, furniture, clothing, and jewelry are fully exempt.
• Burial and Funeral Arrangements: Irrevocable prepaid funeral contracts, burial spaces/plots, and designated burial funds (generally up to $1,500) are exempt.
• Life Insurance: Cash surrender values of life insurance policies are exempt if the combined face value of the policies is $1,500 or less.
• Spousal Protections (CSRA): If you are married and only one spouse requires long-term care, the healthy spouse (community spouse) can keep a substantial share of joint assets under the Community Spouse Resource Allowance—up to $162,660 in 2026.

Note that programs like the Healthy Michigan Plan (standard adult expansion healthcare) do not have an asset limit at all.

You can check your eligibility and apply online using the MI Bridges portal provided by the Michigan Department of Health and Human Services (MDHHS).

How Eligibility is Calculated

Michigan calculates Medicaid eligibility using your household size and gross pre-tax income compared to the Federal Poverty Level (FPL).

• Adults (Ages 19–64): Qualify for the Healthy Michigan Plan if income is at or below 138% of the FPL (which includes a built-in 5% income disregard). For a single person, this limit is approximately $1,835 per month.
• Pregnant Individuals: Income limit is up to 200% of the FPL (about $2,660 per month for a single person/household of two).
• Children (Ages 0–18): Income limit is up to 217% of the FPL (about $2,886 per month for a single-child household), with options like MIChild for slightly higher brackets.
• Asset Tests: Most groups—including adults under the Healthy Michigan Plan—have no asset or resource test. Asset limits (such as $9,950 for a single applicant) generally only apply to long-term care or specific aged, blind, or disabled programs.