MSP Asset Limits by State: Which States Have No Asset Test

Your parent qualifies on income — but the state Medicaid caseworker says their savings account pushes them over the asset limit. Whether that limit even applies depends entirely on which state your parent lives in.

The Federal Baseline Asset Limits

For QMB, SLMB, and QI programs, the 2026 federal baseline allows $9,950 for an individual and $14,910 for a couple in countable resources. The primary residence, one vehicle, household goods, personal effects, and up to $1,500 per person earmarked for burial expenses are all excluded from the count.

QDWI uses tighter limits: $4,000 individual, $6,000 couple. Extra Help (Part D Low-Income Subsidy) is more generous at $18,090 individual and $36,100 couple, which includes a built-in burial expense allowance.

But these are floors, not ceilings. States can set more liberal rules — and many have.

States With No Asset Test at All

The following states and the District of Columbia have completely abolished the asset test for QMB, SLMB, and QI programs. In these states, eligibility depends solely on countable income:

• Alabama
• Arizona
• Connecticut
• Delaware
• District of Columbia
• Louisiana
• Maine
• Mississippi
• New Mexico
• New York
• Oregon
• Vermont

If your parent lives in one of these states, bank balances, retirement accounts, and investments are irrelevant to MSP eligibility. The only question is whether monthly income falls within the program's limits.

California's Reinstated Asset Limit

California presents the most complex situation in 2026. After fully eliminating its Medi-Cal asset test in January 2025, the state reversed course and reinstated it on January 1, 2026, due to budget deficits.

The current limits are substantially higher than federal minimums:

• Individual: $130,000
• Couple: $195,000

These limits remain through June 30, 2027. However, state statute currently schedules a sharp reduction on July 1, 2027 — dropping to $21,000 individual and $31,000 couple. Whether the legislature amends that before the deadline is uncertain, but caregivers should plan for the possibility.

If your parent received MSP or Medi-Cal benefits during the no-asset-test period, their first annual renewal in 2026 requires asset documentation again. Gather bank statements, investment account balances, and any vehicle titles beyond the exempt primary car.

Texas and Other Federal-Baseline States

Texas applies the standard federal asset limits: $9,950 individual, $14,910 couple. Most states that haven't abolished their asset test follow these same federal numbers.

The countable resource calculation excludes:

• The home where your parent (or their spouse) lives
• One automobile
• Household furnishings and personal belongings
• Life insurance policies with a combined face value under $1,500
• Burial plots and up to $1,500 set aside for burial expenses

Anything else — checking accounts, savings accounts, stocks, bonds, a second vehicle, cash value of larger life insurance policies — counts toward the limit.

What to Do If Your Parent Is Close to the Limit

If countable resources hover near the threshold, a compliant spend-down before the application or renewal date can bring them under. Legitimate strategies include paying off credit card debt, making home repairs, purchasing a prepaid irrevocable burial trust, or replacing an aging appliance.

Do not simply transfer assets to a family member — transfers can trigger penalty periods, especially if your parent later needs full Medicaid for long-term care. For complex asset situations, a brief consultation with a Medicaid planner or elder-law attorney is worth the cost.

Check Your State Before Applying

The asset test is the single biggest source of unnecessary MSP denials. A parent who would sail through eligibility in New York might get rejected in Texas with the same finances. Before starting the application, confirm your state's current rules through the local Medicaid office or a SHIP counselor.

The Medicare Savings Programs toolkit includes a state-by-state asset limit reference and the eligibility screening worksheet that walks through the full income and resource calculation.

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