Michigan Medicare Savings Program Asset Limits and What Counts

The asset limits for Michigan's Medicare Savings Programs are higher than most families expect, and the list of excluded assets is longer than the list of things that count. Families routinely assume a parent's home or car disqualifies them when neither appears in the calculation at all.

2026 Asset Limits

These apply equally across all three MSP tiers. The limits are indexed annually to inflation, so they've climbed steadily — from $8,400 individual in 2022 to $9,950 in 2026.

What MDHHS Excludes From the Count

Under BEM 400, the following assets don't factor into the resource test:

The home. A primary residence is excluded regardless of market value, as long as the applicant lives there. A $400,000 house and a $90,000 house receive the same treatment — both are excluded completely.

One vehicle. One car used for personal transportation is excluded no matter what it's worth. A second vehicle would count at its equity value.

Household goods and personal effects. Furniture, appliances, clothing, jewelry worn regularly — all excluded.

Burial spaces and irrevocable burial contracts. Burial plots for the applicant, spouse, or immediate family are excluded. Irrevocable burial contracts are excluded up to state limits. Revocable burial funds are excluded up to $1,500 per person.

Term life insurance. Policies with no cash surrender value don't count. Whole life policies are excluded if total face value per person stays at or below $1,500.

What MDHHS Does Count

Countable resources include bank account balances (checking, savings, CDs), stocks, bonds, mutual funds, IRAs, 401(k)s, cryptocurrency, non-homestead real estate, and the cash surrender value of whole life insurance policies where total face value exceeds $1,500.

Bank statements are the most common verification request. MDHHS asks for the most recent month's statements — every page, including pages that show only the account number or are blank. Missing pages trigger a DHS-3503 verification request, and failing to respond within 10 days leads to denial.

The Confusion Between MSP and General Medicaid Asset Rules

Michigan has eliminated asset tests for several general Medicaid categories, which leads some families to believe asset tests are gone across the board. They aren't — the state doesn't have authority to waive resource tests for QMB, SLMB, and ALMB without specific federal permission. The $9,950/$14,910 limits remain in effect.

That said, these limits are significantly higher than many families assume. The old $2,000/$3,000 Supplemental Security Income asset limits — which many people have memorized from years of helping with other programs — don't apply here.

When a Parent Is Close to the Limit

A couple with $16,000 in combined bank accounts would exceed the $14,910 couple limit by $1,090. Before giving up, check whether any of those funds are in a burial account (up to $1,500 excluded per person) or represent assets that might qualify for other exclusions.

If countable resources genuinely exceed the limit, MDHHS won't approve the application. But the limits reset fresh at each month's evaluation — resources aren't averaged over time. A month where bank balances dip below $14,910 is a month the couple could qualify.

The Michigan Medicare Savings Programs & Extra Help Guide includes a resource worksheet that separates countable from excluded assets and five household examples showing how the math works in practice.

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