Medicare Savings Program Asset Limits 2026: What Counts and What Doesn't

The 2026 Medicare Savings Program (MSP) asset limit is $9,950 for individuals and $14,910 for married couples. But the number that surprises most people isn't the limit — it's how little actually counts toward it. Your home, one car, and most personal belongings are excluded entirely. This guide walks through exactly what is counted, what isn't, and how the test works in practice.

The 2026 MSP Asset Limits at a Glance

When a state applies an asset test, its resource standard generally applies across its MSP tiers. The federal 2026 standard is $9,950 for an individual and $14,910 for a married couple, but some jurisdictions use no test or different limits.

• Individual: $9,950 in countable assets
• Married couple: $14,910 in countable assets
• Alaska and Hawaii: same asset limits ($9,950 / $14,910); only income thresholds are higher in those states
• Fourteen jurisdictions report no MSP asset test: AL, AZ, CT, DE, DC, LA, ME, MA, MS, NM, NY, OR, VT, WA — only income matters there

What Doesn't Count: Excluded Assets

Federal rules exclude several categories of property from the MSP asset test. Understanding what's off the table is often the most important step, because many people assume they're ineligible before they've done the actual math.

• Your primary home. The house or condo where you live is fully excluded, regardless of its market value. A paid-off $400,000 home counts as zero on the asset test.
• One vehicle. One car, truck, or van per household is excluded, regardless of its value. A second vehicle does count as a countable asset.
• Household goods and personal belongings. Furniture, appliances, clothing, and similar personal items are excluded from the count.
• Burial plot and prepaid funeral expenses. A burial plot and reasonable prepaid funeral arrangements are excluded — which is why some applicants near the asset limit choose to prepay funeral costs.
• Life insurance with a low face value. If the total face value of all your life insurance policies is $1,500 or less, the cash value is excluded. Term life insurance has no cash value, so it never counts. Whole life policies with a face value above $1,500 do have countable cash value.

What Does Count: Countable Assets

Once you subtract the excluded items, what remains is your "countable resource total." If that total exceeds the limit for your household size, you won't pass the asset test in states that require one.

• Bank accounts. Checking accounts, savings accounts, certificates of deposit, and money market accounts count at their full balance.
• Stocks, bonds, and mutual funds. These count at their current market value.
• IRAs and retirement accounts. In most states, if you can access or withdraw from an IRA or 401(k), the full balance counts as a resource. This is one of the most common surprises for applicants who assumed retirement savings were protected.
• Cash value of whole life insurance. When the total face value of your policies exceeds $1,500, the cash surrender value counts as an asset.
• Real estate other than your primary home. Vacation homes, rental properties, and vacant land count at their equity value.

A Concrete Example

Suppose you are 68, single, and own your home. Your financial picture looks like this:

• Checking account: $3,200 — countable
• Savings account: $4,800 — countable
• Home (value $220,000) — excluded (primary residence)
• Car (value $8,500) — excluded (one vehicle per household)
• Term life insurance policy — excluded (term policies carry no cash value)

Total countable assets: $8,000 — well under the $9,950 individual limit. Despite owning a home worth $220,000, this person passes the asset test and moves on to the income eligibility check.

Jurisdictions With No MSP Asset Test in 2026

If you live in one of the following jurisdictions, you can skip the MSP asset test entirely — only income matters. California is not on this list; it has higher 2026 asset limits. For the full breakdown, see our guide to states with no MSP asset test.

Alabama — No MSP asset test.

Arizona — No MSP asset test.

Connecticut — No MSP asset test.

Delaware — No MSP asset test.

District of Columbia — No MSP asset test.

Louisiana — No MSP asset test.

Maine — No MSP asset test.

Massachusetts — No MSP asset test.

Mississippi — No MSP asset test.

New Mexico — No MSP asset test.

New York — No MSP asset test.

Oregon — No MSP asset test.

Vermont — No MSP asset test.

Washington — No MSP asset test.

In these jurisdictions, assets play no role in MSP eligibility; income and other program requirements still apply.

Not sure whether your assets or income disqualify you? Enter your numbers in under 60 seconds — Check My Eligibility →

What to Do If You're Over the Asset Limit

Being slightly over the limit doesn't mean you're permanently ineligible. Under the guidance of a licensed benefits counselor or elder-law attorney, some applicants reduce their countable assets through legal means before applying.

• Prepay funeral and burial expenses. This converts countable cash into an excluded asset — a recognized and fully legal strategy.
• Spend down on excluded items. Essential home repairs, dental work, hearing aids, or medical equipment reduce your countable total without waste.
• Consult a SHIP counselor. Your State Health Insurance Assistance Program provides free, unbiased Medicare help. Find your local counselor at shiphelp.org.

Disclaimer: MSP asset rules are set at the federal level but administered by each state's Medicaid agency. Rules around IRA treatment and certain asset types can vary by state. For personalized advice, consult a licensed Medicare counselor or your local SHIP office before applying.

Retirement accounts get special treatment under the asset test — see how IRA and 401(k) withdrawals are actually counted for the details.