Vermont Medicare Savings Program Income Limits 2026: Exact Figures and How They're Calculated

2026 Income Limits by Program

Vermont expanded its Medicare Savings Programs in January 2026 under Act 113 of 2024. The old SLMB tier was absorbed into QMB, which now covers everyone up to 150% of the Federal Poverty Level. Here are the exact monthly income limits effective for 2026:

These figures incorporate standard state disregards and are updated when the Federal Poverty Level changes each April.

SLMB no longer exists as a separate tier. Before January 2026, SLMB covered people between 100% and 120% FPL for Part B premiums only. Vermont's QMB expansion to 150% FPL absorbed the entire SLMB population. Former SLMB enrollees were automatically transitioned to QMB, gaining full cost-sharing protections (not just the Part B premium).

How Vermont Calculates Your Income

Vermont uses non-MAGI income counting rules — different from the marketplace/ACA rules you might be familiar with. The calculation works from gross income before taxes or deductions:

Step 1 — Start with gross Social Security. Use the amount on the award letter, not the deposit. Your parent's deposit is lower because Part B premiums, voluntary tax withholding, and other deductions are taken out. The state counts the full gross amount.

Step 2 — Add all other unearned income. Private pensions, civil service annuities, non-service-connected VA pensions, and interest/dividends. VA Aid and Attendance payments and specific service-connected disability adjustments are excluded under state rules.

Step 3 — Apply the $20 general income disregard. The first $20 of unearned income does not count. This applies once per household, not per person.

Step 4 — If your parent works, apply earned income disregards. The first $65 of earned income is excluded, then 50% of the remaining earned income. Self-employment income is calculated from gross receipts minus allowable business expenses (matching IRS Schedule C).

Step 5 — Compare the countable income to the limits above.

Example Calculation

Your parent receives $1,850 per month in gross Social Security and a $175 per month pension. No earned income.

• Gross unearned income: $1,850 + $175 = $2,025
• Apply $20 general disregard: $2,025 − $20 = $2,005
• Countable income: $2,005

At $2,005 per month, your parent is above the $1,995 QMB limit but below the $2,685 QI limit. They would qualify for QI, which pays the Part B premium of $202.90 per month.

If this same person had a dependent relative living with them (under the April 2026 Dependent Relative Rule), the household size increases to two, and the income limit jumps to the couple threshold — $2,707 for QMB and $3,645 for QI. At $2,005 countable income, they would now qualify for QMB.

The Dependent Relative Rule (April 2026)

Before April 2026, household size for MSP purposes was strictly the applicant plus their spouse. The new Dependent Relative Rule expands this: if your parent or their spouse lives with a blood, adoptive, or marriage relative who depends on them for at least 50% of their financial support, that relative counts in the household.

A larger household means a higher FPL threshold, which can flip a denial into an approval. This rule is especially relevant for parents supporting an adult disabled child or an elderly sibling in the same home.

Why These Limits Are Higher Than Other States

Vermont uses Section 1902(r)(2) authority to apply less restrictive income methodologies. The QMB expansion to 150% FPL is above the federal floor of 100% FPL. The QI upper limit of 202% FPL is also above the standard federal ceiling of 135%. Combined with the zero asset test for QMB and QI, Vermont's eligibility criteria are among the most generous in the country.

Check Your Parent's Eligibility

The Vermont Medicare Savings Programs guide includes a step-by-step income calculation worksheet that walks through every disregard, handles couples where only one spouse has Medicare, and maps the result to the correct program tier.

See more Vermont guides →