Alabama Medicaid income limits
Last verified: June 2026
Verify current limits with Alabama Medicaid Agency
Alabama has some of the most restrictive adult Medicaid income limits in the United States
Alabama Medicaid income limits by coverage group
Alabama's income thresholds vary dramatically by eligibility category. The program was designed before the ACA and has not adopted the expansion, so the limits for most adult categories remain near pre-ACA levels. Children receive significantly higher income thresholds through ALL Kids.
| Coverage group | Approximate FPL % | Notes |
|---|---|---|
| Parents/caretaker relatives | ~18% FPL | Among the lowest in the US |
| Pregnant women | ~146% FPL | Coverage 60 days postpartum |
| Children under 1 year | ~146% FPL | Medicaid (no premium) |
| Children ages 1–18 | Up to 146% FPL | Medicaid (no premium) |
| ALL Kids (CHIP) — children | 146%–312% FPL | Low premiums on sliding scale |
| Aged/Blind/Disabled | SSI-linked | Income and asset limits apply |
| Nursing facility / HCBS waivers | 300% FBR | $2,829/mo individual (2025) |
| Adults without children (non-disabled) | Not eligible | No expansion |
Source: Alabama Medicaid Agency eligibility documentation; KFF State Health Facts (non-expansion states). Thresholds for parents and pregnant women are approximate and verified against published Alabama Medicaid materials. Verify exact current limits at medicaid.alabama.gov or by calling 1-800-362-1504.
Asset limits for aged, blind, and disabled
The Aged, Blind, or Disabled (ABD) category has both income and asset limits. Alabama follows SSI-linked standards, which generally limit individual countable resources to $2,000 for a single person and $3,000 for a couple. Certain assets are excluded: the primary home, one vehicle used for transportation, household goods, life insurance with a face value under $1,500, and burial funds.
For long-term care Medicaid (nursing facility or waiver), the income limit is 300% of the SSI Federal Benefit Rate — approximately $2,829 per month for an individual in 2025. Spousal impoverishment protections apply, allowing the community spouse to retain a protected share of the couple's income and resources.
Children and pregnant women: where Alabama's limits are more generous
Despite restrictive adult eligibility, Alabama covers children well. Children through age 18 qualify for standard Alabama Medicaid up to approximately 146% FPL with no premium. Above that threshold, ALL Kids (CHIP) extends coverage through 312% FPL with low income-scaled premiums. Together, these programs cover virtually all uninsured children regardless of immigration status for citizens and qualified noncitizens.
Pregnant women qualify at approximately 146% FPL, and coverage continues for 60 days after delivery. Newborns born to a Medicaid-enrolled mother are automatically enrolled in Alabama Medicaid for the first year of life.
How Medicaid income limits work
Medicaid eligibility is tied to the Federal Poverty Level (FPL), a measure the Department of Health and Human Services updates each January. States set their income limits as a percentage of FPL — so when FPL increases, the dollar thresholds for Medicaid also shift.
The Affordable Care Act established a standard income methodology called Modified Adjusted Gross Income (MAGI) for most Medicaid applicants. Under MAGI, the agency counts wages, salaries, self-employment income, Social Security benefits, and most other taxable income. Assets — a savings account, vehicle, home — are not counted for MAGI-based programs. That changed with the ACA and applies in all states.
States that expanded Medicaid under the ACA cover most adults at or below 138% FPL. In non-expansion states, income limits for adults without dependent children are far lower — sometimes as low as a few hundred dollars per month — or eligibility for that category simply doesn't exist.
These are federal guidelines — state limits may differ
What counts as income under MAGI
MAGI (Modified Adjusted Gross Income) is the income standard for most Medicaid applicants — children, adults under 65, pregnant women, and parents. It includes wages, salary, tips, self-employment income, unemployment benefits, Social Security retirement and disability benefits (SSDI), and most other taxable income.
It does not count child support received, gifts, loans, inheritances that are not generating income, or Supplemental Security Income (SSI) payments. One key MAGI rule: the ACA added a 5% FPL income disregard for most adults, which effectively raises the usable threshold by that amount. So a state with a 133% FPL limit effectively covers adults to about 138% FPL after the disregard.
Assets — a bank account, car, or home — are not counted for MAGI-based programs. That's a major difference from old-law Medicaid, where asset tests were common. If you previously didn't qualify because of assets, your eligibility may have changed after the ACA.
Asset limits and long-term care Medicaid
MAGI-based programs have no asset test. But Medicaid programs that cover long-term care — nursing home care, home and community-based services for seniors — use the old income and asset methodology, which does include asset limits.
Asset limits for long-term care Medicaid vary by state and are updated periodically. Generally, countable assets above the limit must be spent down before an applicant qualifies. Exempt assets — the primary home (in most circumstances), one vehicle, and certain personal property — are not counted.
Specific asset limits for Alabama's long-term care programs are on the seniors and long-term care page. The thresholds change, so verify current figures with Alabama Medicaid Agency directly.