Arkansas QMB Asset Exclusions: What DHS Doesn't Count
The Asset Limit and What It Really Means
Arkansas DHS sets the 2026 countable asset limit at $9,950 for an individual and $14,910 for a couple. These limits apply to QMB, SLMB, and QI equally.
But the number that matters isn't total assets — it's countable assets. DHS excludes several categories entirely, and many families who think they're over the limit actually aren't once the exclusions are applied.
Your Home Is Excluded
The primary residence is completely excluded from the asset count, with no value cap, as long as your parent lives in the home or intends to return to it. A $200,000 house and a $40,000 house are treated identically — neither counts.
This is the single biggest exclusion and the one that most often makes the difference. Families who own a home free and clear sometimes assume the equity disqualifies them. It doesn't.
If your parent is temporarily in a hospital or rehabilitation facility but plans to return home, the exclusion still applies. The home only becomes countable if your parent permanently moves out with no intent to return.
One Vehicle Is Excluded
DHS excludes one automobile unconditionally regardless of its value, as long as it's used for transportation by the applicant or a household member. A 15-year-old sedan and a recent-model truck are treated the same — excluded.
A second vehicle is counted at its equity value (current value minus any loan balance) unless it can be proven essential for self-support or specialized medical transport.
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Burial Arrangements
Burial plots, grave sites, and vaults for your parent and immediate family members are excluded entirely.
Designated burial funds get a more specific treatment:
- Irrevocable burial contracts: Fully paid contracts are exempt regardless of value. If your parent has a prepaid funeral that can't be cancelled and is fully paid, the entire amount is excluded.
- Revocable burial funds: Excluded up to $1,500 per spouse. This amount is reduced dollar-for-dollar by any excluded life insurance face value (see below).
Life Insurance
Whole life insurance policies with a combined face value of $1,500 or less per person are excluded entirely. If the aggregate face value exceeds $1,500, DHS counts the total cash surrender value of all policies as a resource.
Term life insurance with no accumulated cash value is always excluded — there's nothing to count.
The practical implication: a small $1,000 whole life policy that your parent has had for decades is excluded. But a $5,000 policy with $3,200 in cash surrender value means that $3,200 counts as an asset.
What Does Count
After the exclusions, DHS looks at:
- Checking and savings account balances
- Stocks, bonds, and mutual funds
- Accessible retirement accounts (IRAs, 401(k)s that can be liquidated)
- Non-home real estate equity
- Cash surrender value of life insurance when the combined face value exceeds $1,500
DHS evaluates assets on the first day of each calendar month. A temporary spike — say, a Social Security retroactive payment deposited on the 28th — counts if it's still in the account on the 1st.
The Joint Account Trap
This catches families regularly. If your parent's bank account lists an adult child as a co-owner, DHS presumes the entire balance belongs to the applicant. The child's name on the account doesn't reduce what DHS counts.
To rebut this, the co-owner needs to provide deposit records, tax returns, or bank statements showing that the funds were contributed exclusively by the non-applicant. Without documentation, the full balance counts against your parent's asset limit.
If you've added your name to your parent's account for convenience — to pay bills or manage finances — and the combined balance is close to $9,950, consider whether separating the accounts or documenting ownership would help.
Retirement Accounts
IRAs and 401(k)s are evaluated based on whether they can be liquidated. If your parent can take a lump-sum withdrawal (even with an early-withdrawal tax penalty), the net cash value counts. If irrevocable periodic distributions have begun, the payments count as unearned monthly income rather than counting the underlying balance as an asset.
Personal Effects and Household Goods
Excluded unconditionally. Furniture, clothing, appliances, tools — DHS doesn't count any of it and doesn't impose a dollar ceiling.
Running the Numbers
Most Arkansas seniors who own a modest home, drive one car, and have less than $10,000 in savings are well within the asset limits once exclusions are applied. The families who should look most carefully are those with accessible retirement accounts, multiple bank accounts, or life insurance policies with accumulated cash value.
The Arkansas Medicare Savings Programs & Extra Help Guide includes a detailed asset worksheet that walks through each exclusion and helps you calculate your parent's countable assets before applying.
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Download the Arkansas — Medicare Savings Program Eligibility Checklist — a printable guide with checklists, scripts, and action plans you can start using today.