Minnesota Medicare Savings Program Asset Exemptions — What Counts and What Doesn't

The $10,000 Limit — and What It Doesn't Include

Minnesota's Medicare Savings Program asset limit is $10,000 for an individual and $18,000 for a couple. That's notably higher than the $3,000/$6,000 limit for full Medical Assistance (MA-ABD), and higher than the federal baseline of $9,950/$14,910. Minnesota adopted the MIPPA-adjusted federal standard, which includes annual CPI increases.

But the number that matters more than the limit is the list of exclusions. Many families assume their parent is over the threshold when they're actually well under it, because major assets don't count.

What's Exempt

Primary home. Your parent's house is completely excluded from the MSP asset calculation, regardless of its value. The $752,000 home equity cap that applies to Long-Term Care Medicaid does not apply to Medicare Savings Programs. A parent who owns a $400,000 home free and clear with $8,000 in savings is under the asset limit.

One vehicle. One car or truck used for transportation is exempt regardless of fair market value. Only the second and subsequent vehicles count as assets.

Household goods and personal effects. Furniture, appliances, clothing, electronics, jewelry for personal use — all fully exempt. There's no itemization or appraisal requirement.

Burial assets. Burial plots, vaults, and crypts for the applicant, spouse, or immediate family are fully excluded. Prepaid irrevocable burial contracts are exempt at any value. Revocable burial funds are exempt up to $1,500 per person.

Life insurance. Term life policies with no cash surrender value are exempt. Whole life policies are exempt if the total combined face value across all policies doesn't exceed $1,500. Above that threshold, the cash surrender value counts as an asset.

What Counts

Bank accounts. Every checking, savings, CD, and money market account is fully countable. The county also runs the automated Asset Verification System (AVS) to confirm balances electronically with financial institutions.

Investments. Stocks, bonds, mutual funds, and cryptocurrency are counted at current market value.

Retirement accounts. Traditional IRAs, Roth IRAs, 401(k)s, and 403(b)s count as assets to the extent funds can be withdrawn as a lump sum (minus any withdrawal penalties). Exception: if an IRA is paying out mandatory periodic distributions, the cash principal may be excluded — but the monthly payout counts as income.

Non-homestead property. A lake cabin, hunting land, vacant lot, or rental property counts at net market value. This is where rural Minnesota families sometimes run into trouble.

Farmland — the Rural Minnesota Question

The primary residence is excluded, while non-homestead real property — including separate agricultural land, timberland, or a second hunting property — counts as an asset at net market value. For a farm, ask the county how it classifies each parcel before applying.

For the complete asset screening worksheet and step-by-step income calculation tools, the Minnesota Medicare Savings Programs & Extra Help Guide covers both the exemption rules and the Method B accounting that determines eligibility.

See more Minnesota guides →