Alaska Medicare Savings Program Income Limits 2026

Every article about Medicare Savings Program income limits quotes the continental U.S. numbers — $1,255 a month for QMB, $1,506 for SLMB. If your parent lives in Alaska, those numbers are wrong. Alaska uses its own Federal Poverty Level guidelines that run roughly 25% higher than the lower 48, and that difference is the margin between qualifying and not qualifying for thousands of Alaska seniors.

2026 Alaska MSP Income Limits

DPA updates these figures every April 1st based on the Alaska FPL published by HHS. All figures below include the standard $20 monthly unearned income disregard:

Asset Limits

The resource test is the same across QMB, SLMB, and QI:

• Individual: $9,950
• Couple: $14,910

Your primary home is excluded regardless of equity value. One vehicle, burial plots, irrevocable prepaid burial contracts, and term life insurance policies are also excluded. Countable assets include checking and savings accounts, CDs, stocks, bonds, mutual funds, and IRAs.

For joint bank accounts with a non-applicant co-owner, DPA presumes 100% of the funds belong to the applicant unless you provide bank records proving the funds belong to the other person.

How DPA Counts Income

DPA evaluates gross income, not the net amount deposited in a bank account. This trips up many applicants — Social Security deducts Part B premiums, tax withholding, and sometimes Medicare Advantage premiums before the deposit arrives. Your parent's award letter shows the gross amount, and that is the figure DPA uses.

The income calculation follows a specific sequence:

1. Start with gross monthly unearned income (Social Security, pensions, VA benefits)
2. Subtract the $20 general disregard
3. For earned income: subtract $65, then subtract a $90 work expense deduction, then divide the remainder by two
4. Add countable unearned and earned income together
5. Compare to the program limit

Biweekly income is converted to monthly by multiplying by 2.15. Weekly income is multiplied by 4.3.

Alaska-Specific Income Exclusions

Three income sources that trip up Alaska applicants have special rules:

Permanent Fund Dividend (PFD): Counted as unearned income in the month received (October). If the PFD pushes monthly income over the limit for that one month, it does not permanently disqualify your parent. The key is what happens to the money afterward — funds retained in a bank account the following month become a countable resource.

ANCSA Distributions: Cash dividends, stock, and settlement trust distributions from Alaska Native regional or village corporations are completely excluded from both income and resources.

Senior Benefits Program: Monthly cash payments from Alaska's Senior Benefits Program are excluded from countable income for MSP purposes.

Spousal Income Rules

When a Medicare beneficiary lives with a non-applying spouse, DPA evaluates combined household income against the couple limit. If the couple's combined countable income falls at or below the couple threshold, the applying spouse qualifies. Married spouses permanently separated or living apart due to institutionalization are evaluated as individuals using the single-person limits.

What If Income Is Barely Over the Limit

If your parent's countable income is above QMB but below SLMB or QI, they still qualify for Part B premium assistance. Even the QI tier — the highest income threshold at $2,265/month for a single person — saves $2,434.80 per year in Part B premiums alone, plus automatic Extra Help that caps prescription drug costs.

The Alaska Medicare Savings Programs & Extra Help Guide includes a step-by-step income worksheet that walks through the full DPA calculation, including the disregards and exclusions specific to Alaska. It also covers what happens when income fluctuates month to month, and how to handle the PFD spike in October without losing coverage.

See more Alaska guides →