Illinois Medicare Savings Program Income Limits 2026

2026 Monthly Income Limits by Program

Illinois's three Medicare Savings Programs each serve a different income band based on the Federal Poverty Level (FPL):

These are the baseline FPL figures. But Illinois adds a critical wrinkle that most eligibility charts leave out.

The $25 Disregard That Expands Eligibility

Illinois applies a $25 standard monthly income disregard to every MSP application. This disregard is automatic — the caseworker subtracts $25 from total gross unearned income before comparing it against the FPL thresholds.

In practice, this raises the effective gross income ceiling by $25 across all three programs:

• QMB effective ceiling (single): $1,355/month gross Social Security
• SLMB effective ceiling (single): $1,620/month
• QI-1 effective ceiling (single): $1,819/month

For couples, the disregard applies once per household, raising each couple limit by $25 as well.

This matters because many families check their parent's Social Security amount against a basic income chart, see it's above the published limit by $10 or $20, and give up. The disregard means someone receiving $1,340/month in Social Security — seemingly $10 over the QMB limit — has a countable income of $1,315 after the disregard, well within QMB range.

How Income Is Calculated

Illinois counts gross income from all non-exempt sources before any deductions:

Unearned income (most common for seniors):

• Social Security retirement or SSDI benefits — the gross amount, before Part B premium deductions or tax withholding
• Private pensions, annuities, Railroad Retirement benefits
• VA benefits
• Interest and dividend income

Earned income (for working applicants):

• The first $65 of monthly wages is disregarded
• Half of the remaining earnings above $65 is disregarded
• The $25 general disregard applies on top of these earned income exclusions

Spousal income combining: When a married couple lives together and one spouse has Medicare, both spouses' incomes are combined and measured against the couple limits — even if only one spouse is the Medicare beneficiary.

Bi-weekly and weekly income conversion: Income received bi-weekly is multiplied by 2.15 to get the monthly figure. Weekly income is multiplied by 4.3.

2026 Resource (Asset) Limits

All three programs use the same resource limits:

• Single person: $9,950
• Married couple: $14,910

These are the federal MSP resource thresholds, which are lower than Illinois's general AABD Medicaid resource limit of $17,500 per individual. A senior might qualify for Illinois Medicaid with $15,000 in savings but be over the MSP asset limit. This is one of the most common points of confusion in MSP eligibility.

What counts as a resource: checking accounts, savings accounts, CDs, stocks, bonds, mutual funds, secondary real estate, additional vehicles.

What's exempt: the primary home (if the applicant, spouse, or dependent lives there), one vehicle, household furnishings, personal belongings, irrevocable burial contracts, and revocable burial funds up to $1,500 per person.

Married Couples: Special Rules

When only one spouse has Medicare, both spouses' financial information is evaluated together. Both incomes combine, and both countable resources combine against the couple limits.

If one spouse needs long-term care while the other remains at home, Illinois's spousal impoverishment protections apply: the community spouse can keep up to the Community Spouse Resource Allowance of $143,172 (upper standard: $162,660) and a maintenance needs allowance up to $4,066.50/month. These protections don't apply to standard MSP determinations — they're for long-term care Medicaid situations.

The COLA Disregard: January–March Protection

When Social Security's annual Cost-of-Living Adjustment (COLA) takes effect each January, it can push a beneficiary's income above MSP limits before the new FPL guidelines are published (typically in April). Illinois enforces a COLA disregard: the January COLA increase is ignored for QMB, SLMB, and QI-1 determinations during January, February, and March. Updated FPL standards take effect in April, preserving eligibility continuity.

Not Sure If Your Parent Qualifies?

The Illinois Medicare Savings Programs & Extra Help Guide includes an income and asset calculation worksheet that walks through every disregard, exemption, and spousal deeming rule specific to Illinois — so you can determine eligibility before filing.

See more Illinois guides →