Arizona Medicaid income limits
Last verified: June 2026
Verify current limits with Arizona Health Care Cost Containment System (AHCCCS)
Income limits from the official AHCCCS eligibility chart — revised February 2026
AHCCCS income limits by coverage group (February 2026)
Arizona's AHCCCS program uses monthly income thresholds, not annual amounts, as its eligibility standard. The table below shows the official limits from the February 2026 AHCCCS Eligibility Requirements chart — a one-page document the AHCCCS Administration updates when FPL figures change.
| Coverage group | FPL % | Monthly limit (household of 1) | Monthly limit (household of 4) |
|---|---|---|---|
| Adults ages 19–64 (ACA expansion) | 138% FPL | ~$1,800/mo | ~$3,697/mo |
| Children under age 1 | 147% FPL | $1,956/mo | $4,043/mo |
| Children ages 1–5 | 141% FPL | $1,876/mo | $3,878/mo |
| Children ages 6–18 | 133% FPL | $1,769/mo | $3,658/mo |
| KidsCare (CHIP) — children under 19 | 225% FPL | $2,993/mo | $6,188/mo |
| Pregnant women | 156% FPL | $2,075/mo | $4,290/mo |
| ALTCS (long-term care) | 300% FBR | $2,982/mo | N/A (individual program) |
| Freedom to Work (disability) | 250% FPL | $3,325/mo | Earned income only |
Source: AHCCCS Eligibility Requirements chart, revised February 1, 2026. Household income figures are monthly amounts after applicable deductions. KidsCare requires children not to be otherwise eligible for AHCCCS Medicaid. Monthly premiums for KidsCare range from $10 to $70 per month covering all eligible children in the household.
No asset test for standard AHCCCS — ALTCS is different
MAGI-based AHCCCS coverage — for adults 19–64, children, and pregnant women — has no asset test. Savings accounts, vehicles, and home equity are not counted. This is the same rule that applies in all ACA expansion states.
ALTCS, Arizona's separate long-term care program, is a different story. ALTCS has a resource limit of $2,000 for a single applicant. If the applicant has a spouse living in the community, between $32,532 and $162,660 of the couple's combined resources may be set aside for the community spouse — per the February 2026 AHCCCS Eligibility Requirements chart.
Arizona operates an estate recovery program for ALTCS. AHCCCS may seek reimbursement from the estate of a member who received ALTCS services after age 55. Consult an elder law attorney before transferring assets if a family member may soon need ALTCS.
KidsCare: Arizona's CHIP program at 225% FPL
KidsCare is Arizona's CHIP program, covering children under 19 whose families earn too much for AHCCCS Medicaid but at or below 225% FPL. The February 2026 AHCCCS chart shows monthly income limits of $2,993 for a household of 1 and $6,188 for a household of 4.
KidsCare charges monthly premiums ranging from $10 to $70 per month — one premium per household covers all eligible children. State employees and their children are not eligible for KidsCare. Children must not be eligible for AHCCCS Medicaid; KidsCare serves only the gap above the Medicaid child income limits.
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 Arizona's long-term care programs are on the seniors and long-term care page. The thresholds change, so verify current figures with Arizona Health Care Cost Containment System (AHCCCS) directly.