Delaware Medicare Savings Program Income Limits 2026

Every January, families scramble to figure out whether their parent's Social Security increase just pushed them over the Medicare Savings Program limits. Delaware's 2026 numbers are out, and they're more generous than you might expect — especially because Delaware has eliminated the asset test entirely.

2026 Income Limits by Program Tier

Delaware bases eligibility on the Federal Poverty Level, updated each April for MSP processing. A standard $20 monthly unearned income disregard raises the effective ceiling slightly above the published FPL benchmarks.

For an individual, that means a gross Social Security check of up to $1,350 qualifies for QMB — the tier that covers everything from Part B premiums to hospital deductibles. A check up to $1,816 qualifies for QI, which at minimum gets the $202.90 Part B premium paid.

How Delaware Counts Income

Delaware counts gross unearned income: Social Security (retirement, survivors, disability), pensions (CSRS, private, military), VA non-service-connected pensions, and annuities. The figure is evaluated before tax withholdings or Part B premium deductions.

What's excluded: SNAP benefits, energy assistance (LIHEAP), VA Aid and Attendance allowances, and disaster relief payments.

For applicants with earned income from employment, Delaware applies a generous exclusion sequence:

1. Deduct $20 from unearned income first (or from earned income if unearned is less than $20)
2. Deduct the next $65 from gross monthly wages
3. Deduct 50% of remaining wages

With no unearned income, a working beneficiary earning $800/month in gross wages would have $357.50 counted after the $20 general disregard, the $65 earned-income disregard, and the 50% disregard of the remaining $715.

Delaware Waives the Asset Test Completely

This is where Delaware stands apart from many states. Under Section 1902(r)(2), Delaware has eliminated the resource test for all MSP tiers — QMB, SLMB, and QI. No bank account balances, no IRA values, no home equity assessments, no vehicle counts.

The standard federal asset limits ($9,950 individual / $14,910 couple in 2026) do not apply in Delaware for Medicare Savings Programs.

Families who've heard that "you can't have more than $2,000 in savings" are repeating a rule that applies to other programs (like long-term care Medicaid) or to states that still enforce the resource test. In Delaware, the only financial question for MSP is monthly income.

The Delaware ASSIST application still asks about assets because it simultaneously screens for programs that do enforce resource limits. DSS caseworkers applying MSP policy disregard those answers.

COLA Protection: January Through March

When Social Security announces a Cost-of-Living Adjustment each January, the resulting income increase is disregarded for MSP eligibility through the end of March. This prevents a beneficiary from losing coverage during the gap between when the COLA hits their check (January) and when updated FPL thresholds take effect for MSP processing (April 1).

If your parent's January COLA pushed their check a few dollars past the current limit, they stay covered while the new thresholds catch up.

The Social Security Fairness Act Impact

The Social Security Fairness Act, signed January 5, 2025, repealed the Government Pension Offset and the Windfall Elimination Provision. For retired teachers, firefighters, and government employees in Delaware who were previously receiving reduced Social Security, this means higher monthly benefits.

Those higher checks count as gross unearned income for MSP purposes. However, the retroactive lump-sum adjustments SSA paid are excluded from income in the month received. And since Delaware has no asset test, the lump sum doesn't disqualify anyone from MSP regardless of where it sits afterward.

If your parent's new post-repeal Social Security amount stays under the QI ceiling ($1,816/month individual), they still qualify for at least Part B premium relief.

What to Do If Your Parent Is Close to the Limit

Income near the cutoff doesn't mean automatic disqualification. Several factors can bring countable income below the line:

• The $20 monthly disregard applies to every applicant
• Any earned income gets the $65 + 50% exclusion
• Spousal deeming rules for married couples where only one spouse is on Medicare can reduce the counted amount substantially
• If income exceeds QMB limits but falls below SLMB or QI thresholds, the higher tiers still cover the Part B premium

Our Delaware Medicare Savings Programs, Extra Help & DPAP Guide includes a step-by-step income calculation worksheet and the complete disregard sequence, so you can determine your parent's countable income before submitting the application.

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