Medicaid looks at your income, household size, and sometimes your assets, but the exact rules depend on which state you live in and which Medicaid program you are applying for.

There is no single Medicaid program with one set of rules. Your state runs its own Medicaid system, and within that system there are usually several different programs — one for children, one for pregnant people, one for people over 65, one for people with disabilities, and sometimes others. Each has its own income limit and asset rules. A person who does not meet the income limit for one program might meet it for another.

The most common thing Medicaid checks is your household income — usually your gross income before taxes. Your state compares your income to the federal poverty line and sets a limit as a percentage of that line. In some states the limit is 100 percent of the poverty line; in others it is 138 percent or higher. Some states have not expanded their Medicaid programs at all, which means fewer people can meet the income requirement.

Your state also counts how many people live in your household. A family of four has a higher income limit than a single person, because the poverty line itself is higher for a larger household. If you have a child, that child counts as part of your household even if they do not live with you full-time.

Key Takeaways

  • Income limits vary by state and by which Medicaid program you are applying for — there is no single national threshold.
  • Your state will ask for proof of income, such as recent pay stubs, tax returns, or a letter from your employer.
  • Some Medicaid programs check your assets (savings, vehicles, property), but the rules differ by state and program type.
  • Your state's Medicaid office or a local community health center can tell you the exact income and asset limits that apply to you.
  • If your income is slightly above the limit, you may still be able to get coverage through a different program or through a marketplace plan with subsidies.

How Your State Measures Household Income

Your state Medicaid program will ask you to report your gross monthly or annual income. Gross income means what you earn before taxes are taken out. This includes wages from a job, self-employment income, Social Security, unemployment benefits, child support, and some other sources. It does not include food stamps or housing assistance.

You will need to prove your income. The most common proof is a recent pay stub — usually from the last 30 days. If you are self-employed, your state will ask for tax returns or business records. If you receive Social Security or unemployment, you can show the benefit statement or award letter. If you have no income, you will need to document that too, because some Medicaid programs cover people with zero income.

Some income does not count toward the limit. For example, if you receive Supplemental Security Income (SSI), your state may not count the first $65 of your monthly income, or it may use different rules altogether. If you are a student, some states do not count student loans or grants. The rules vary, so ask your state Medicaid office what counts and what does not.

Asset Limits: What Your State May Check

Many Medicaid programs also have asset limits — a cap on how much money or property you can own and still be covered. However, not all programs check assets, and the limits vary widely by state and program type.

Medicaid for children and pregnant people often has no asset limit at all, or a very high one. Medicaid for seniors and people with disabilities more often has an asset limit — typically $2,000 for a single person or $3,000 for a couple, though some states set it higher. Assets usually include savings accounts, checking accounts, stocks, and vehicles. A home you live in usually does not count as an asset for Medicaid purposes.

If you are close to an asset limit, ask your state Medicaid office which assets count and which do not. Some states do not count life insurance, or they do not count a vehicle if you use it for work. The rules are specific enough that it is worth asking before you assume you are over the limit.

Citizenship and Residency Requirements

To get Medicaid, you must be a U.S. citizen or a may have access to immigrant. may have access to immigrants include people with a green card, people granted asylum, refugees, and some other categories. Your state will ask you to prove your citizenship or immigration status. A birth certificate, passport, or green card usually works.

You must also live in the state where you are applying. Most states do not require you to have lived there for a certain length of time, but a few do. If you just moved, ask your new state's Medicaid office whether you can apply right away or whether you need to wait.

Special Rules for Specific Medicaid Programs

Some Medicaid programs have additional requirements beyond income and assets. Medicaid for people with disabilities usually requires that you have a disability that is expected to last at least 12 months or result in death. You will need medical records or a letter from a doctor. Your state will review these documents to decide whether your condition meets the definition.

Medicaid for seniors (people 65 and older) has income and asset limits, but also requires that you be 65 or older. You will need proof of age, such as a birth certificate or passport. If you are already receiving Medicare, you can still get Medicaid if your income is low enough — this is called "dual may be able to access" coverage.

Medicaid for pregnant people and children often has higher income limits than other programs. Some states cover pregnant people with income up to 200 percent of the poverty line, or even higher. Children sometimes have even higher limits. If you do not meet the income limit for adult Medicaid, check whether you meet it for pregnancy or child coverage.

What Happens After You Report Your Information

Once you submit your income and other information, your state Medicaid office will verify it. They may contact your employer, your bank, or other sources to confirm what you reported. This process usually takes 30 to 45 days, though it can be faster or slower depending on your state and how busy the office is.

Your state will send you a notice in the mail telling you whether you are covered or not. If you are not covered, the notice will explain why and tell you whether you can appeal. If your income is slightly above the limit, the notice may direct you to the health insurance marketplace, where you may be able to get a plan with subsidies based on your income.

If your income or household changes after you are approved, you should report the change to your state Medicaid office. Some changes require you to report within 10 days; others can wait until your annual renewal. Ask your state office what changes you need to report and how to report them.

How to Find Your State's Specific Income Limits

Because income limits vary by state and program, you need to find the limits that apply to you. Your state Medicaid office publishes these limits and updates them each year. You can find your state office by going to your state's health department website or by calling 211, which is a free referral line that connects you to local health and human services programs.

When you contact your state Medicaid office, have your household size and approximate monthly income ready. They can tell you in a few minutes whether you are likely to meet the income limit for any of your state's Medicaid programs. If you are close to the limit, ask them to explain how they count income in your situation — for example, whether they count child support or whether they subtract work expenses if you are self-employed.

Frequently Asked Questions

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

Yes, in most states Medicaid counts your spouse's income even if you file taxes separately. Some states have exceptions for people who are legally separated or in certain other situations. Ask your state Medicaid office whether your spouse's income will be counted and, if so, whether any of it can be excluded.

What if my income changes every month because I work irregular hours?

Your state will usually average your income over the last 30 to 90 days, or they will use your most recent pay stub. If your income is seasonal or highly variable, tell the Medicaid office when you apply — they may be able to use a lower average or a different method to calculate your income.

Can I get Medicaid if I have a job but my employer does not offer health insurance?

Yes. Medicaid does not require that you be unemployed. If your job income is below your state's Medicaid limit, you can get Medicaid even if you work full-time. Some states also have programs specifically for working people with low income.

What counts as an asset for Medicaid purposes?

Cash, savings accounts, checking accounts, stocks, and bonds usually count. A car you own usually counts, though some states exclude one vehicle. A home you live in usually does not count. Retirement accounts like a 401(k) or IRA often do not count. Ask your state Medicaid office which specific assets count in your state.

If I am denied Medicaid, can I appeal?

Yes. Your state's denial notice will explain how to appeal and the deadline to do so — usually 30 to 60 days. You can appeal by mail, phone, or in person, depending on your state. If you appeal, you can ask for a hearing where you can explain your situation to someone other than the person who made the first decision.