Medicaid looks at your income, household size, assets, and citizenship status

Medicaid is a joint federal and state program, which means each state sets its own income limits and rules. There is no single national threshold. To understand whether you meet the requirements, you need to know your state's specific limits and which category of coverage you might fit into — parent, child, pregnant person, elderly, or disabled.

The basic test is straightforward: your household income must fall below your state's limit for your household size, and your countable assets must stay under a cap (usually $2,000 for an individual, though this varies). You must also be a U.S. citizen or may have access to immigrant, and you cannot be incarcerated. Beyond that, the details depend on which Medicaid program your state runs and which category you fall into.

Key Takeaways

  • Income limits vary by state and by category — a parent's limit is different from a child's or an elderly person's — so you must check your specific state's numbers.
  • Medicaid counts household income, not just your own, and includes wages, Social Security, child support, and unemployment benefits.
  • Most states have an asset limit of $2,000 for individuals, though some states have higher limits or none at all for certain categories.
  • You must be a U.S. citizen or a may have access to immigrant with a valid immigration status to be covered.
  • Your state's Medicaid office or your state health insurance marketplace can tell you the exact income and asset limits that apply to you.

How your state calculates your household income

Medicaid counts gross household income — the total earnings of everyone in your household before taxes or deductions. This includes wages from a job, Social Security benefits, Supplemental Security Income (SSI), child support, alimony, unemployment benefits, and some types of rental income. It does not include food stamps, housing assistance, or most tax refunds.

Your household includes you, your spouse if you are married, and your children under age 19 (or up to 22 if they are a full-time student in some states). If you are an adult living with parents, your parents' income usually does not count unless you are under 19. The exact definition of household varies slightly by state and by which Medicaid program you are in, so confirm with your state's Medicaid office.

Once your state adds up all household income, it compares that total to the income limit for your household size and category. If you are below the limit, you pass the income test. If you are above it, you do not meet the income requirement — though some states have programs for people slightly over the limit, and some allow deductions for work expenses or child care.

Asset limits and what counts as an asset

Most states cap countable assets at $2,000 for a single person and $3,000 for a couple, though some states have raised or removed these limits in recent years. Your home and one vehicle do not count. A reasonable amount of household goods and personal items do not count either.

What does count: cash, bank accounts (checking and savings), stocks, bonds, investment accounts, a second vehicle, and real estate other than your primary home. Some states do not count life insurance or burial funds up to a certain amount. Retirement accounts like IRAs and 401(k)s are usually not counted, and neither is money in a 529 education savings plan.

If you are over the asset limit, you cannot receive Medicaid until you spend down to the threshold. Some people do this by paying medical bills, home repairs, or funeral expenses. Your state's Medicaid office can explain what counts in your state and whether any exceptions apply to you.

Citizenship and immigration status requirements

You must be a U.S. citizen or a may have access to immigrant to receive Medicaid. may have access to immigrants include lawful permanent residents (green card holders), refugees, asylees, and certain other visa holders. You will need to provide proof — a birth certificate or passport for citizens, or a green card or immigration document for may have access to immigrants.

If you are undocumented, you are not covered by regular Medicaid in most states. However, some states offer limited Medicaid coverage for emergency services only, and some offer coverage for pregnant people or children regardless of immigration status. Check your state's rules to see what is available to you.

Income limits by category vary widely across states

Medicaid has several categories, and each has its own income limit. A parent in one state might be covered at 138% of the federal poverty level, while a parent in another state might be covered at 100% or even 200%. A child's limit is often higher than a parent's. An elderly or disabled person may have a different limit again.

The federal poverty level changes each year. For 2024, the poverty line for a single person is around $15,000 and for a family of four around $31,000, but your state's Medicaid limit may be a percentage of that figure. The only way to know your state's exact limit is to contact your state Medicaid office, use your state's health insurance marketplace website, or call 211 for a referral to local resources.

Special rules for elderly and disabled people

If you are 65 or older or have a disability, your state may have different income and asset rules. Some states use a higher asset limit for elderly or disabled people. Some allow more deductions from income — for example, medical expenses or work-related costs. Some have programs specifically for people who are working but have a disability.

If you receive Supplemental Security Income (SSI), you are automatically covered by Medicaid in most states. If you receive Social Security Disability Insurance (SSDI), you may be covered depending on your state and your income level. The rules are complex, so speak with your state Medicaid office or a disability advocate if you are unsure.

How to find your state's specific requirements

Your state Medicaid office publishes income and asset limits for each category. You can find it by searching "[your state] Medicaid" or by visiting your state's health insurance marketplace website. Many states also have online tools that let you enter your income and household size to see whether you may be covered.

If you cannot find the information online, call your state Medicaid office directly — the number is on your state's health department website. You can also call 211 (a free referral service) and ask for your local Medicaid office or a community health worker who can walk you through the process. Having your recent pay stubs, tax return, and proof of citizenship or immigration status on hand will speed things up.

Frequently Asked Questions

Does my spouse's income count if we are married but file taxes separately?

Yes. Medicaid counts the income of your spouse regardless of how you file taxes. If you are married and living together, your spouse's income is part of your household income for Medicaid purposes. Some states have exceptions for certain situations, so ask your state Medicaid office if your circumstances are unusual.

What happens if my income goes up after I am covered?

You must report the change to your state Medicaid office. If your income rises above the limit, your coverage will end, usually at the end of the month in which you reported the change. Some states have a grace period or allow you to keep coverage for a few months while you transition to other insurance. Report changes promptly to avoid owing back premiums.

Can I be covered if I am a student?

Yes, if your income and assets meet your state's limits. Being a student does not disqualify you. If you are under 19 and living with your parents, your parents' income counts toward the household total. If you are 19 or older and living independently, only your income counts.

Do I have to be unemployed to be covered?

No. You can work and still be covered if your income is below your state's limit. Some states have programs that help working people with disabilities stay on Medicaid even if their earnings rise above the normal limit. Ask your state Medicaid office about work incentive programs if you are employed and disabled.

What if I have a child but we do not live together?

If your child lives with you, they are part of your household and their income (if any) counts. If your child lives with someone else, they are not part of your household for Medicaid purposes. Child support you receive counts as income; child support you pay does not reduce your income for Medicaid.