Oklahoma Medicare Savings Program Asset Limits

2026 Asset Limits

These are countable resource limits — what's left after subtracting everything that's exempt. For most applicants, the exempt list is more important than the limit itself, because it determines what OKDHS actually counts.

What's Exempt (Not Counted)

Your home. The primary residence is fully exempt with no equity cap for MSP categories. This is different from long-term care Medicaid, which has a home equity limit. For MSP, a house worth $500,000 and a house worth $50,000 are treated identically — both are exempt.

One vehicle. The first vehicle used for household transportation is exempt regardless of value. A second vehicle is counted at its equity value (fair market value minus what you owe on it).

Household goods and personal items. Furniture, clothing, appliances — all exempt.

Burial plots and spaces. Burial plots for the applicant, spouse, and immediate family are fully exempt.

Burial funds. Revocable burial funds up to $1,500 per person are exempt. Irrevocable pre-need burial contracts are exempt with no dollar limit — this is a common planning tool for people slightly over the asset limit.

Life insurance. If the total face value of all life insurance policies is $1,500 or less per person, the cash surrender value is exempt. If the face value exceeds $1,500, the cash surrender value becomes a countable asset. This catches people who hold an old whole life policy with a $5,000 face value and significant cash value.

What Counts

Bank accounts. Checking, savings, CDs, money market accounts — all counted at their balance on the first day of the month. OKDHS verifies these through the Asset Verification System (AVS), an automated bank query, plus 30–60 days of paper statements you submit.

Joint bank accounts. A joint account held with a non-spouse (typically an adult child) is counted 100% against the applicant unless the co-owner can prove they made all the deposits. Adding your name to a parent's account for convenience doesn't protect those funds — it counts them against you if you apply.

Retirement accounts. IRAs, 401(k)s, and similar accounts are countable resources unless they're in periodic payout status generating mandatory monthly income. An untouched IRA sitting with $12,000 in it is a countable asset. An IRA that's been annuitized into a monthly payout becomes income instead.

Cash. Literally counts.

No Transfer Penalty

Unlike long-term care Medicaid, MSP eligibility does not impose a 60-month lookback period on asset transfers. There's no penalty for giving money to family members before applying. There's no home equity limit. This is one of the most misunderstood distinctions in eldercare benefits — families assume the strict Medicaid transfer rules apply to MSP and either don't apply or spend money on elder law attorneys to do asset planning that isn't necessary.

The Irrevocable Burial Contract Strategy

An irrevocable pre-need funeral or burial contract is exempt without a dollar cap under Oklahoma's countable-resource rules. Confirm that the contract is irrevocable and document its terms when reporting your resources to OKDHS.

Tribal Asset Exemptions

Oklahoma has 39 federally recognized tribes, and federal rules exempt specific categories of tribal assets from Medicaid resource calculations: Indian trust lands, restricted-fee lands, mineral rights held in trust, and direct lease payments from tribal land. These exemptions must be explicitly cited during the application process — OKDHS caseworkers don't always apply them automatically.

The Oklahoma Medicare Savings Programs & Extra Help Guide includes an asset worksheet that walks through every exemption category, including tribal exemptions, with the exact OKDHS rules and Appendix C-1 references.

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