Indiana Medicare Savings Program Income Limits 2026
2026 Income Limits for Indiana MSPs
Indiana sets its Medicare Savings Program income thresholds well above the federal floor. Where federal law allows states to start QMB at 100% of the Federal Poverty Level, Indiana uses 150%. That difference puts thousands of additional seniors within reach of premium assistance.
Here are the 2026 limits:
| Program | FPL % | Monthly Income (Single) | Monthly Income (Couple) |
|---|---|---|---|
| QMB | 150% | $2,015 | $2,725 |
| SLMB | 170% | $2,281 | $3,086 |
| QI | 185% | $2,481 | $3,356 |
| QDWI | 200% | $2,680 | $3,627 |
Indiana achieves these higher thresholds through state-specific income disregards under Section 1902(r)(2) of the Social Security Act. DFR publishes the net effective limits directly, so applicants don't need to calculate the disregards themselves.
Asset Limits
QMB, SLMB, and QI share the same resource limits in 2026:
- Single applicant: $9,950
- Married couple: $14,910
QDWI uses lower resource limits ($4,000 single / $6,000 couple).
Key exemptions that don't count toward the limit:
- Your primary home and contiguous land, if you or your spouse live there or intend to return (exempt regardless of value)
- One primary vehicle used for transportation by you or a household member (exempt regardless of value)
- Irrevocable burial contracts and burial plots
- Up to $1,500 per person in a designated burial fund
- Term life insurance policies (no cash value)
Whole life insurance is exempt only if the total face value across all policies is $1,500 or less. Above that, the cash surrender value counts as a resource.
How DFR Counts Income
DFR evaluates gross income — not what lands in the bank account. The gross Social Security benefit before the Part B premium deduction is what matters. Pensions, VA benefits, and annuities are counted at their gross amounts too.
For earned income, Indiana applies standard disregards: a $20 general disregard (applied to unearned income first), then $65 plus half the remaining gross earnings are excluded. A senior working part-time at $800 a month would have only about $347.50 counted after disregards.
When spouses live together and only one is on Medicare, DFR uses the couple income and resource limits. Both spouses' income is combined. If spouses live apart, DFR evaluates the applicant as a single individual using the lower single limits.
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The QI Program's Funding Wrinkle
QI operates under capped federal block-grant funding, unlike QMB and SLMB which are open-ended entitlements. Indiana processes QI applications first-come, first-served. Once the state's allocation is exhausted, qualified applicants go on a waitlist. In practice, Indiana has not run out of QI funding in recent years, but the structural risk exists.
QI also requires annual re-application — it does not automatically renew like QMB and SLMB do through the ex parte process.
What These Numbers Mean in Practice
A single Indiana senior collecting $2,100 a month in Social Security qualifies for SLMB, which would stop the $202.90 Part B premium from being deducted — saving $2,434.80 a year. At $1,900 a month, they qualify for QMB, which covers not just the premium but all deductibles, coinsurance, and copayments.
The Indiana Medicare Savings Programs Guide includes a step-by-step income calculation worksheet and walks through the full application process for each program level.
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