Michigan Medicaid income limits 2025

Last verified: June 2026

Michigan Medicaid income limits by coverage group

Michigan uses different income thresholds for different coverage groups. The table below shows the limits as percentages of FPL and approximate 2026 annual figures for common household sizes, based on 2026 HHS poverty guidelines.

* Statutory limit is 133% FPL. A 5% income disregard is applied under federal MAGI rules, making the effective threshold equivalent to 138% FPL. Source: MDHHS Michigan Medicaid program guidance; 42 CFR 435.603.

Why the Healthy Michigan Plan limit is listed as "138%" when the law says "133%"

The Healthy Michigan Plan enabling legislation set the income threshold at 133% of the Federal Poverty Level. Federal MAGI (Modified Adjusted Gross Income) rules require states to apply a 5% income disregard before testing eligibility. That disregard is subtracted from an applicant's income, not added to the threshold — but the practical effect is identical to raising the ceiling by 5 percentage points.

The result: an adult earning up to 138% FPL qualifies for the Healthy Michigan Plan. The "133%" statutory language and the "138%" eligibility ceiling are both correct and refer to the same program.

Does Michigan Medicaid have an asset test?

MAGI-based programs — the Healthy Michigan Plan, children's Medicaid, and coverage for pregnant women — have no asset test. Savings accounts, a car, a retirement account, and home equity do not affect eligibility for these programs. Only income is counted, and income is measured using a method similar to federal income tax filing.

Non-MAGI programs for aged, blind, and disabled individuals have separate asset limits. For nursing facility Medicaid specifically:

• Individual applicant: $2,000 in countable resources
• Married couple (both applying): $3,000 in countable resources
• Primary home, one vehicle, and some personal property are excluded from the asset count
• Spousal impoverishment protections apply when one spouse is in a nursing facility and the other remains in the community

Asset planning for nursing facility Medicaid is complex. Rules around gift transfers and look-back periods apply under federal law. MDHHS recommends consulting with a benefits specialist or elder law attorney before transferring assets in anticipation of applying.

What income does MDHHS count?

For MAGI-based programs, Michigan uses the same income calculation method as the ACA marketplace. Countable income includes wages, self-employment income, Social Security benefits, rental income, alimony, and most other forms of gross income before taxes. Child support received is not counted. Gifts and inheritances are generally not counted.

Household size matters. A larger household has a higher FPL dollar threshold. A family of four at 138% FPL has a higher allowable income than a single adult at 138% FPL. MI Bridges calculates both figures automatically based on the information entered in the application.

2025 income limits by household size

Based on 2025 HHS Federal Poverty Guidelines. Healthy Michigan Plan uses 133% FPL + 5% income disregard, effectively equal to 138% FPL shown here.

Michigan vs neighboring states: income limit comparison