Nebraska Medicare Savings Program Income Limits 2026

Every January, families run their parent's Social Security amount against the Medicare Savings Program limits and assume the worst. Most of the time, they're using the wrong number. Nebraska DHHS counts gross income — the amount before Part B premiums, tax withholdings, or garnishments are subtracted — and then applies a mandatory $20 disregard. Getting this math wrong is the single most common reason eligible Nebraskans never apply.

2026 Income Limits by Program Tier

These are the published upper limits for each MSP tier in Nebraska, effective January 1 through December 31, 2026. The $20 general income disregard is already factored into these thresholds.

Compare your gross income (including Social Security and other income, before deductions) directly against these numbers. If it is at or below a tier's limit, you meet that tier's income test.

2026 Resource Limits

All three MSP tiers share the same resource caps:

• Individual: $9,950
• Couple: $14,910

These are substantially higher than Nebraska's standard Medicaid asset limit ($4,000 single / $6,000 couple), which confuses families who assume the lower number applies. The MSP limits follow federal MIPPA standards, not state Medicaid rules.

Your home, one car, household goods, burial plots, irrevocable burial contracts (up to $6,924 in Nebraska), and term life insurance don't count. Bank accounts, CDs, stocks, mutual funds, and the cash value of whole life insurance over $1,500 in face value do count.

How the $20 Disregard Works

A senior with $1,365 in gross monthly Social Security is $15 above the published QMB limit of $1,350. Since the published limits already include the $20 disregard, $1,365 does not meet the QMB income limit; it is below SLMB's $1,616 limit.

The critical detail: don't subtract $20 twice. The published limits above already incorporate the disregard. If your total gross monthly income is $1,350 or less, you meet the QMB income limit.

What Counts as Income

Nebraska DHHS budgets these as monthly unearned income under Non-MAGI rules:

• Gross Social Security benefits (Title II, before any deductions)
• Pension payments
• Annuity distributions
• Interest and dividend income
• Rental income

Earned income from wages gets additional exclusions ($65 plus half the remainder), which means working seniors may qualify even if their total income looks high.

When Income Pushes You Between Tiers

A senior with $1,400 in gross Social Security is above QMB ($1,350) but well within SLMB ($1,616). SLMB still saves $2,434.80 per year in Part B premiums and triggers automatic Extra Help for prescription drugs.

A senior with a $1,400 Social Security benefit plus a $230 pension has $1,630 in gross income. That is above the SLMB limit of $1,616 and below the QI limit of $1,816, so the income falls within QI's range. QI saves the same $2,434.80 annually in Part B premiums.

The Social Security Fairness Act Factor

The Social Security Fairness Act, signed January 5, 2025, repealed WEP and GPO for benefits payable from January 2024 onward. If your parent's benefit increased after SSA's adjustment, recalculate against the 2026 limits. A higher monthly check could push someone from QMB into SLMB or QI — still worth applying for, since all three tiers eliminate the Part B premium and trigger Extra Help.

The Nebraska Medicare Savings Programs & Extra Help Guide includes a self-screening income worksheet that walks through the full calculation, including earned income exclusions and spousal deeming rules.

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