Rhode Island Medicare Savings Program Income Limits 2026

2026 QMB and QI Income Limits

Rhode Island's Medicare Savings Programs use gross monthly income — the amount before Medicare premiums, taxes, or overpayment garnishments are deducted. The published limits already include a standard $20 unearned income disregard, so don't subtract another $20 from your Social Security figure.

QMB pays the Part B premium ($202.90/month), the Part A hospital deductible ($1,736 per benefit period), the Part B deductible ($283/year), and all Medicare copayments and coinsurance. QI covers only the Part B premium.

Gross vs. Net: The Most Common Eligibility Mistake

The income figure DHS evaluates is your gross Social Security benefit — not the net amount deposited in your bank account. If your gross Social Security is $1,650 per month but $202.90 is withheld for Part B, your bank deposit shows $1,447.10. Many people compare the deposit to the limit and assume they qualify easily, but DHS uses $1,650.

This distinction matters most for applicants near the QMB ceiling. Someone with a gross benefit of $1,690 is over the $1,683 QMB limit by $7, even though their take-home is $1,487.10.

How the $20 Income Disregard Works

Under SSI methodology (which Rhode Island follows for MPPP eligibility), the first $20 of any unearned income per month is disregarded. Rhode Island bakes this into the published limits — the federal QMB floor is lower, and the state adds $20 to arrive at $1,683.

The practical takeaway: use your gross Social Security amount and compare it directly to the published limit. Don't subtract $20 yourself, or you'll double-count the disregard and potentially miss a denial coming.

Income Sources That Count

DHS counts these as unearned income:

• Gross Social Security retirement or disability (SSDI) benefits
• Private pensions and annuity payments
• Monthly distributions from IRAs, 401(k)s, and similar retirement accounts
• Non-service-connected VA pension payments

These are excluded:

• VA Aid and Attendance allowances
• VA service-connected disability compensation

Earned income (wages from a job) gets larger disregards: the first $20 of unearned income (or unused portion), plus $65 of gross earnings, plus half of the remaining earnings are all disregarded.

What Counts as Assets

Both QMB and QI use the same asset limits: $9,950 for an individual, $14,910 for a couple. Checking and savings accounts, CDs, stocks, and mutual funds count. Your home, one car, burial plots, and up to $1,500 in a designated burial fund are exempt. Irrevocable prepaid funeral contracts are fully excluded.

Life insurance is a common trip-up. Term policies with no cash value don't count. Whole life policies are exempt only if the total face value of all policies is $1,500 or less. Above that threshold, the combined cash surrender value becomes a countable asset.

When Limits Shift During the Year

Social Security cost-of-living adjustments (COLAs) hit in January, but updated federal poverty level guidelines that drive the MSP limits usually take effect in March or April. During that gap, a COLA increase that technically pushes someone over the old limit is disregarded. This prevents a January COLA from triggering a coverage loss before the new, higher limits kick in.

For the full income calculation walkthrough — including how retirement account distributions, joint bank accounts with adult children, and the Social Security Fairness Act retroactive payments affect eligibility — see the Rhode Island Medicare Savings Programs, Extra Help & RIPAE Guide.

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