Arkansas Medicare Savings Program Income Limits 2026

2026 Income Limits by Program

Arkansas sets Medicare Savings Program income thresholds as percentages of the federal poverty level. These limits reflect countable income after the standard $20 monthly unearned income disregard:

QMB (100% FPL): $1,350/month individual · $1,824/month couple

SLMB (120% FPL): $1,616/month individual · $2,184/month couple

QI (135% FPL): $1,816/month individual · $2,455/month couple

These figures update every January when new federal poverty guidelines are published. If you're reading outdated state websites showing lower numbers like $1,255 for QMB individuals, those are from a previous year.

How the $20 Disregard Works

Arkansas applies a standard $20 monthly exclusion to unearned income before comparing it against the limits above. This applies to Social Security retirement benefits, SSDI, pensions, VA benefits, and annuities.

If your parent receives $1,365 in monthly Social Security, their countable income is $1,345 — under the QMB limit. Families who look only at gross income often assume they don't qualify when they actually do.

For applicants with earned income, DHS also excludes the first $65 of gross monthly earnings plus half of the remainder, on top of any unused portion of the $20 disregard.

2026 Asset Limits

All three programs use the same federal asset limits:

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

Older state publications still show outdated figures like $9,090 or $13,630. The current limits reflect 2026 federal cost-of-living adjustments.

What doesn't count as an asset:

• Primary residence (as long as the applicant lives there or intends to return)
• One vehicle, regardless of value
• Burial plots, vaults, and grave sites for the applicant and immediate family
• Designated burial funds up to $1,500 per person (reduced by excluded life insurance face value)
• Irrevocable burial contracts (fully exempt)
• Life insurance with aggregate face value of $1,500 or less
• Personal belongings and household goods
• Term life insurance with no cash value

What counts:

• Bank balances (checking, savings)
• Stocks, bonds, mutual funds
• Non-home real estate
• Accessible retirement accounts (IRAs, 401(k)s that can be withdrawn as a lump sum)
• Life insurance cash surrender value when face value exceeds $1,500

The Joint Account Trap

If your parent shares a bank account with you, DHS presumes the entire balance belongs to the applicant. To rebut that presumption, the non-applicant co-owner must provide deposit slips, tax records, or other documentation showing those funds were contributed exclusively by the co-owner. This catches families off guard — a convenience checking account with an adult child listed can push countable assets over the limit.

Couples Where Only One Spouse Has Medicare

When both spouses live together, DHS evaluates combined income and assets against the couple limits, even if only one spouse is applying for Medicare cost-sharing. If the spouses are legally separated or living apart continuously without intent to rejoin, DHS evaluates the applicant individually using the lower single limits.

For a full eligibility worksheet that walks through every disregard and exclusion — plus what to do if your parent is close to the limits — the Arkansas Medicare Savings Programs & Extra Help Guide has the complete calculation framework.

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