Minnesota Medicare Savings Program Income Limits 2026

2026 Income Limits by Tier

Minnesota updates its Medicare Savings Program income thresholds each July 1, following the January release of federal poverty guidelines. The limits below are effective July 1, 2026 through June 30, 2027.

The income figures already incorporate the standard $20 unearned income disregard that Minnesota applies under Method B accounting. The asset limits are Minnesota-specific — higher than the federal baseline of $9,950 — because the state elected to follow the MIPPA-adjusted federal standards of $10,000/$18,000 rather than its own MA-ABD limits of $3,000/$6,000.

How Minnesota Calculates Countable Income

The county worker doesn't just look at the number on your Social Security check. Minnesota uses Method B accounting, which starts from gross Social Security — the amount before Part B premiums are deducted — and applies specific disregards.

Here's how it works for unearned income:

1. Start with gross Social Security (RSDI). If your parent receives $1,580 deposited after the $202.90 Part B deduction, the gross figure is $1,782.90.
2. Add any pension, annuity, or traditional IRA distribution income.
3. Subtract the $20 standard disregard from total unearned income.

For earned income (if the applicant works):

1. Apply the $20 standard disregard first (if not already used against unearned income).
2. Subtract $65 from remaining earned income.
3. Subtract 50% of whatever is left.

VA Aid and Attendance allowances, SNAP benefits, and in-kind support from family members (like an adult child paying rent) are excluded entirely.

A Worked Example

A 72-year-old widow in Hennepin County receives $1,580/month in gross Social Security and a $100/month pension. She has $6,500 in savings and $2,000 in checking. She lives with her adult daughter.

• Gross income: $1,580 + $100 = $1,680
• After $20 disregard: $1,660 countable monthly income
• Assets: $6,500 + $2,000 = $8,500 (under the $10,000 limit)
• Daughter's income: not counted — Minnesota never deems an adult child's income to a parent

She exceeds QMB ($1,330) and SLMB ($1,596) but falls under QI ($1,795). The county would approve QI, saving her $2,434.80/year in Part B premiums and triggering automatic Extra Help for prescription drugs.

What Counts as an Asset — and What Doesn't

The $10,000/$18,000 asset limit applies only to countable assets. Major exclusions include:

• Primary home — exempt regardless of value (the $752,000 equity cap applies to Long-Term Care Medicaid, not MSPs)
• One vehicle — exempt regardless of value
• Household goods and personal effects — fully exempt
• Burial plots and irrevocable burial contracts — exempt; revocable burial funds exempt up to $1,500
• Term life insurance — exempt (whole life exempt if total face value under $1,500)

Bank accounts, CDs, stocks, mutual funds, and accessible retirement accounts (IRAs, 401(k)s where lump-sum withdrawal is possible) count toward the limit. Non-homestead real property — a lake cabin, hunting land, or vacant lot — counts at net market value.

For the complete Method B calculation worksheets, asset screening tools, and the full DHS-3876 application walkthrough, see the Minnesota Medicare Savings Programs & Extra Help Guide.

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