Medicaid has raised its income and asset limits for long-term care in 2026. The changes affect eligibility for nursing home coverage, home care waivers, and aged or disabled Medicaid programs across the United States.
The new income cap for nursing home and home-based services is now $2,982 per month for individuals in most states. That’s up from last year due to a 2.8% federal cost-of-living adjustment tied to Supplemental Security Income benefits.
The increases could help thousands of seniors and disabled adults who were previously over the income threshold. Medicaid is the primary payer for long-term care in the U.S., covering nursing homes and in-home services when Medicare does not.
Asset limits remain at $2,000 for individuals in most states, but several states have raised their caps significantly. California now allows up to $130,000 in countable assets. New York raised its limit to $32,396, and Illinois permits $17,500.
According to the Centers for Medicare & Medicaid Services (CMS), these thresholds are adjusted annually based on inflation and federal benefit rates.
For married couples, the rules are different. When one spouse applies for long-term care Medicaid, the other spouse is protected from losing all household income and savings. The non-applicant spouse can now keep up to $162,660 in assets, up from last year’s limit. They can also receive monthly income support of up to $4,066.50 if needed.
“These protections prevent spousal impoverishment,” said a spokesperson from the National Council on Aging. “They ensure the healthy spouse can maintain financial stability while the other receives care.”
Home equity limits also increased. A primary residence is usually exempt from Medicaid’s asset count, but only if the home’s equity stays below $752,000 in most states. In high-cost areas, the limit can reach $1,130,000.
The new limits apply to Nursing Home Medicaid, Home and Community-Based Services (HCBS) waivers, and Aged, Blind, and Disabled (ABD) Medicaid. Eligibility rules still vary by state because Medicaid is state-run.
Families planning for long-term care should check their state’s exact limits. Tools like the Medicaid Eligibility Requirements Finder and state Medicaid Planning Assistance guides offer updated details by location.
Applicants must still meet medical and functional requirements in addition to financial thresholds. Medicaid does not cover long-term care for everyone—only those who meet strict eligibility criteria based on income, assets, and level of care needed.
The 2026 updates went into effect January 1. Seniors or family members who were denied coverage in 2025 may now qualify and can reapply through their state Medicaid office.
