Yes, you can have a savings account and still get Medicaid in most cases. Whether your balance actually matters depends on which type of Medicaid you're applying for. If you're a working-age adult applying through the ACA Marketplace pathway (called MAGI Medicaid), your savings account is not counted at all, only your income matters. If you're applying as a senior, a person with a disability, or for long-term care coverage (called Non-MAGI Medicaid), your savings and other assets are counted, and most states cap countable resources at $2,000 for an individual in 2026.
This distinction trips up a lot of applicants because "Medicaid" is really an umbrella term covering several different eligibility categories, each with its own rules. Below is a breakdown of which category you likely fall into, the actual dollar limits for 2026, what counts as a "countable asset" versus what's exempt, and how to apply.
MAGI Medicaid: No Asset Test at All
Since the Affordable Care Act, most adults under 65, pregnant women, parents, and children qualify for Medicaid using MAGI rules, Modified Adjusted Gross Income. Under MAGI, eligibility is based entirely on income compared to the Federal Poverty Level (FPL). There is no bank account check, no vehicle value review, and no countable-assets worksheet. A savings account with $5,000 or $50,000 in it does not disqualify you if your income qualifies.
2026 MAGI Medicaid Income Limits (138% of FPL, expansion states)
| Household Size | Annual Income Limit (138% FPL) | Monthly Income Limit |
|---|
| 1 | $22,025 | approximately $1,835 |
| 2 | $29,725 | approximately $2,477 |
| 3 | $37,425 | approximately $3,119 |
| 4 | $45,540 | approximately $3,795 |
These figures apply to the 40 states plus Washington D.C. that expanded Medicaid under the ACA. Alaska and Hawaii use higher poverty guidelines, so their income limits are somewhat higher. If your state has not expanded Medicaid, income limits for childless adults are typically much lower or nonexistent, and you may need to check ACA Marketplace subsidies instead.
Non-MAGI Medicaid: Where Savings Accounts Matter
If you're applying for Medicaid based on age (65+), disability, or you need long-term care such as nursing home coverage or home and community-based waiver services, you fall under Non-MAGI rules. These categories do count savings, checking accounts, stocks, bonds, and other liquid resources against a strict limit.
2026 Non-MAGI Medicaid Asset Limits (Aged, Blind, Disabled, Long-Term Care)
| Category | Individual Limit | Couple Limit |
|---|
| Standard aged/disabled Medicaid (most states) | $2,000 | $3,000 |
| Illinois | approximately $17,500 | higher for couples |
| New York | approximately $33,000+ | higher for couples |
| California (Non-MAGI Medi-Cal) | approximately $130,000 | approximately $195,000 |
The $2,000 individual limit is the federal default and still applies in the majority of states. A handful of states have raised their limits significantly or eliminated asset tests for certain Medicaid categories in recent years, so it is worth checking your specific state's rules before assuming the $2,000 figure applies to you. California is a notable outlier with a much higher threshold for its aged and disabled Medi-Cal category, though the exact figure has shifted in recent budget cycles, so confirm the current number with your county office before relying on it.
Non-MAGI Monthly Income Limit (long-term care Medicaid, most states)
Most states cap monthly income for long-term care Medicaid applicants at approximately $2,982 in 2026 for an individual. Some states use "income cap" rules requiring a Qualified Income Trust (also called a Miller Trust) if your income exceeds this amount but you still need nursing home level care.
What Counts as a Countable Asset
For Non-MAGI Medicaid, not every dollar you own counts against the limit. The following are typically counted:
- Checking and savings account balances
- Cash on hand
- Stocks, bonds, and mutual funds
- Certificates of deposit (CDs)
- Second vehicles beyond one exempt car
- Additional real estate beyond your primary home
The following are typically exempt and do not count toward the limit:
- Your primary home (up to an equity limit, often around $713,000 to $1,097,000 depending on the state, in 2026)
- One vehicle of any value
- Household goods and personal belongings
- Prepaid burial plots and a limited burial fund, often up to $1,500
- Term life insurance with no cash value
- Retirement accounts in some states, if in payout status
If your countable assets exceed the limit by even a small amount, most states will deny the application until you "spend down" the excess on exempt items, medical bills, or an approved planning strategy.
Medicare Savings Programs: A Separate Set of Limits
If you have Medicare and need help with premiums, deductibles, or copays, Medicare Savings Programs (MSPs) are administered through your state Medicaid agency and have their own, more generous resource limits.
2026 Medicare Savings Program Resource Limits
| Program | Individual Resource Limit | Couple Resource Limit | Individual Monthly Income Limit |
|---|
| QMB (Qualified Medicare Beneficiary) | $9,950 | $14,910 | approximately $1,350 |
| SLMB (Specified Low-Income Medicare Beneficiary) | $9,950 | $14,910 | approximately $1,616 |
| QI (Qualifying Individual) | $9,950 | $14,910 | approximately $1,816 |
These resource limits rose from $9,660 in 2025 to $9,950 in 2026, tracking inflation. Some states, including Massachusetts and Connecticut, have eliminated the asset test for MSPs entirely, so residents there can qualify on income alone regardless of savings.
How to Apply
- Identify your category. If you're under 65 and not disabled, you almost certainly apply under MAGI rules, no asset test. If you're 65 or older, blind, disabled, or need long-term care, you'll go through Non-MAGI review.
- Gather documentation. Recent bank statements (usually the last 3 to 5 years for long-term care applications, due to look-back review), pay stubs, proof of identity, and Social Security number.
- Apply through your state Medicaid agency or HealthCare.gov. MAGI Medicaid applications can be filed through the ACA Marketplace at HealthCare.gov, which screens for Medicaid automatically. Non-MAGI applications typically go through your state's dedicated Medicaid or Department of Human Services website.
- Report all accounts honestly. For asset-tested categories, list every account, even small or dormant ones. Undisclosed accounts discovered during verification can delay or deny your application.
- Ask about spend-down options if you're over the limit. Many states allow you to reduce countable assets through prepaying funeral expenses, paying off debt, or home repairs, which can bring you under the threshold legally.
- Wait for the eligibility determination. MAGI applications are often decided within days. Non-MAGI and long-term care applications, especially those requiring a look-back review, can take 45 to 90 days.
Why This Distinction Matters
A lot of confusion around "does Medicaid check your bank account" comes from people mixing up these two systems. A 35-year-old parent applying for Medicaid based on low income will never be asked for bank statements covering years of history. A 78-year-old applying for nursing home Medicaid will be asked for exactly that, because long-term care Medicaid includes a five-year look-back period designed to catch asset transfers made specifically to qualify for benefits.
If you're not sure which category applies to you, the safest approach is to check both. Many people assume they'll be denied because they have savings, when in fact their application would be processed under MAGI rules where savings are irrelevant.
Frequently Asked Questions
Does Medicaid check your bank account every year?
For MAGI Medicaid, no, there is no asset review at any point, only annual income redetermination. For Non-MAGI Medicaid (aged, disabled, long-term care), most states conduct an annual or periodic renewal that can include a fresh assets check, and long-term care applications include a one-time five-year look-back at the time of initial application.
How much money can you have in savings and still get Medicaid?
If you qualify under MAGI rules (most working-age adults, children, and pregnant women in expansion states), there is no savings limit at all, only income counts. If you qualify under Non-MAGI rules (aged, blind, disabled, or long-term care), the federal default limit is $2,000 for an individual and $3,000 for a couple in 2026, though several states set higher limits.
What happens if my savings account goes over the Medicaid asset limit?
For Non-MAGI Medicaid, exceeding the limit typically results in a denial or a requirement to spend down the excess before reapplying. Common spend-down strategies include paying off medical bills, prepaying funeral expenses, or making home repairs, all of which reduce countable assets to exempt or spent funds rather than cash.
Does a 401(k) or IRA count as a savings account for Medicaid?
It depends on the state and whether the account is in payout status. Some states exempt retirement accounts entirely for Non-MAGI Medicaid if the owner is taking required minimum distributions. Other states count the full balance as a resource. Check your specific state's Medicaid policy manual or ask your caseworker directly.
Can I qualify for Medicaid if I have savings but low income?
If you're applying under MAGI rules, yes, only income matters, so a low-income applicant with savings can still qualify. If you're applying under Non-MAGI rules, low income alone is not enough. Your countable assets also need to fall under the resource limit for your state and category.
Are Medicare Savings Programs the same as Medicaid asset limits?
No. Medicare Savings Programs (QMB, SLMB, and QI) are run through state Medicaid agencies but use their own resource limits, which are considerably higher than the standard $2,000 Non-MAGI Medicaid limit. In 2026, the MSP resource limit is $9,950 for an individual and $14,910 for a couple.
