Louisiana Medicare Savings Program Income Limits 2026

2026 Income Thresholds

Louisiana's Medicare Savings Programs use Federal Poverty Level percentages as their income ceilings, updated each year. Here are the 2026 monthly limits after applying the relevant income disregards:

QDWI is a separate, narrower program for working disabled individuals who lost premium-free Part A. It's the only tier that still enforces an asset test ($4,000 single / $6,000 couple).

How Louisiana Counts Your Income

LDH uses SSI-based income counting rules, not the Modified Adjusted Gross Income (MAGI) methodology used for Medicaid expansion. The distinction matters because SSI rules include specific disregards that can bring your countable income below the threshold even when your gross income appears to exceed it.

Step 1: Start with gross income. This is the amount on your Social Security award letter or 1099 — the full benefit before any deductions, including the Part B premium. If Social Security deposits $1,097.10 into your bank account each month, your gross benefit is actually $1,300 ($1,097.10 + $202.90 Part B premium withholding).

Step 2: Apply the $20 general income disregard. LDH subtracts $20 from your unearned income (Social Security, pensions, VA benefits, annuities). This is mandatory — every applicant gets it.

Step 3: Apply earned income disregards if you work. If you have wages or self-employment income, LDH disregards the first $65 plus half of the remaining earnings. Any unused portion of the $20 general disregard applies to earned income first.

Worked Examples

Single retiree, Social Security only: Gross benefit is $1,365/month. Subtract $20 disregard = $1,345 countable income. That's under the $1,350 QMB limit — approved.

Married couple, one works: Spouse A receives $1,200/month in Social Security. Spouse B earns $900/month in wages. Unearned income: $1,200 minus $20 disregard = $1,180. Earned income: $900 minus $65 = $835, then halved = $417.50. Total countable: $1,180 + $417.50 = $1,597.50. That's under the $1,824 QMB couple limit — approved.

Single retiree with pension: Social Security is $900/month, public pension is $500/month. Total gross unearned: $1,400. Subtract $20 disregard = $1,380. That exceeds the $1,350 QMB limit but falls under the $1,616 SLMB limit — approved for SLMB (Part B premium only).

The January COLA Gap

Each January, Social Security applies a Cost-of-Living Adjustment that raises your gross benefit. The new Federal Poverty Level guidelines that set MSP income limits typically aren't published until March. During that January–February gap, a COLA increase could push your income past the old limits.

Louisiana addresses this with a mandatory COLA disregard: LDH ignores the dollar amount of the COLA increase until the new FPL guidelines are officially published. This prevents a two-month coverage lapse every year.

Assets Are Not Counted

Louisiana eliminated the asset test for QMB, SLMB, and QI effective October 2019, codified in the Medicaid Eligibility Manual Chart Z-900. Your bank accounts, retirement savings, home, vehicle, stocks, and any other assets are completely excluded from the eligibility determination.

If an LDH caseworker asks about assets during an MSP-only application, the questions may be on the form for data capture purposes (they're used when evaluating full Medicaid or long-term care). For a standalone MSP application, assets cannot be grounds for denial. An asset-based denial for QMB, SLMB, or QI is a policy violation that should be appealed immediately.

The Louisiana Medicare Savings Programs & Extra Help Guide has a printable income worksheet that walks through the full calculation, including earned income and spousal deeming scenarios.

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