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Income Rules for Medicaid

Medicaid eligibility for you and your family is based on a number of requirements. Your family must meet a certain income criterion in order to receive Medicaid benefits. These requirements differ depending upon the number of members in your household and the federal poverty level during the time of your application.

  1. Members of Your Household

    • Medicaid includes pregnancies when determining household members.

      When assessing your eligibility for Medicaid coverage, your case worker will compare your gross household income to the number of family members living in your home. Your income requirements increase for each person living with you. If you or your spouse is expecting a child, this child also counts as a family member.

    Federal Poverty Level

    • Each year, the U.S. government issues a federal poverty level. This income determines whether you are living at or below poverty. Certain states have different requirements based upon the poverty level. Check with your local health department to find out federal poverty level requirements for your state.

    Other Sources of Income

    • If you receive other sources of income such as child support or alimony, your state Medicaid office will take that income into consideration when determining your eligibility. You also need to account for all countable assets including cash, bank deposits, IRA accounts, pension funds and annuities. Assets such as homes, jewelry and other items do not count as assets when applying for Medicaid.

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