Medicaid Figures for 2026

A caregiver helping a patient work on a puzzle.

Every January, the Michigan Department of Health and Human Services (MDHHS) releases updated figures for Medicaid qualification. For 2026, just as Social Security recipients received a cost of living adjustment, MDHHS has also increased its Medicaid figures.

  Last year, the $2000 asset limit for a single person was increased to $9660.  For 2026, the new asset limit is $9950. For a married couple, the maximum spousal share is the maximum amount of countable assets the at-home spouse is allowed to keep. For 2025, the amount was $157,920. For 2026, the maximum spousal share is increased to $162,660.  This means that if a married couple has $325,320 or more in countable assets, the at-home spouse is now able to keep $162,660.  There also is a minimum spousal share which has been increased for 2026 to $32,532.  In other words, if a married couple has $65,064 or less in countable assets, the at-home spouse is able to keep $32,532.

    The Medicaid rules also allow for a Minimum Monthly Maintenance Needs Allowance.  This is the minimum amount of income the at-home spouse is allowed.  For 2025, the minimum allowance the at-home spouse allowed was $2,555. Beginning January 2026, the Minimum Monthly Maintenance Needs Allowance is $2643.75.

     There is also a Maximum Monthly Maintenance Needs Allowance. This is the amount of income that the community spouse is allowed to keep if his or her home related expenses are high enough.  In 2026, the Maximum Monthly Maintenance Needs Allowance for the community spouse is increased from $3948 to $4066.50.

     For 2026, the limit on irrevocable funeral contracts remains at $15,870 although this figure is often increased later in the year.  Also, the amount a person can assign for funeral expenses under a life insurance policy has not yet been increased for 2026 and remains at $13,870.

    Finally, MDHHS will apply a penalty to any gifts made within 5 years of the filing of a Medicaid application.  In 2025, the penalty divisor was $11,842.  For 2026, the penalty divisor has been increased to $12,216.30.  For example, suppose Betsy Smith gives a total of $20,000 to her church over a 5 year period. If she should later require nursing home care, she would be penalized from receiving Medicaid benefits for 1.64 months (20,000/12,216.30 = 1.64).

     2026 promises to be an interesting year as we wait to see what new Medicaid rules will be adopted.  As always, stay tuned for further updates as they occur.

This blog post is written by Brett A. Howell, Certified Elder Law Attorney. The blog is written as a service of The Elder and Estate Planning Law Firm, P.L.L.C. This information is for general informational purposes only and does not constitute legal advice. For a consultation to address specific questions, please call (810) 953-3846.