Minnesota Medicaid income limits

Last verified: June 2026

Medical Assistance income limits by coverage group

Minnesota uses Modified Adjusted Gross Income (MAGI) methodology to calculate income for most MA eligibility groups. MAGI counts most taxable income — wages, self-employment, unemployment, and Social Security — and excludes certain types like child support received. Different coverage groups have different income ceilings.

Source: MN DHS Income and Asset Guidelines (DHS-3461A); 2025 Federal Poverty Level. Verify current figures at mn.gov/dhs or with your county office. MAGI-based limits are calculated using federal poverty level percentages that update annually each spring.

No asset test for most Medical Assistance members

Most people who apply for Medical Assistance — adults without children, parents, pregnant women, children, and young adults through age 20 — face no asset test. Savings accounts, vehicles, investment accounts, and home equity do not affect eligibility for these groups.

Seniors age 65 and older and adults who are blind or disabled (age 21 and older) are subject to asset limits. The asset limit for these groups is found in DHS form 3461A and updated periodically. Certain assets are always excluded: the home you live in, household goods, one vehicle, and certain assets owned by American Indian tribal members.

If you have assets above the limit, your county or tribal office can explain what options are available. Some people can use a spenddown — deducting medical expenses from income — to qualify even if their income exceeds the standard limit.

The spenddown option for people over the income limit

Minnesota's Medical Assistance spenddown lets some people qualify even if their income exceeds the standard limit. It works like a deductible: you subtract qualifying medical expenses from your income until you reach the MA income limit. Once you reach that threshold, MA covers the remaining costs for covered services during that period.

Not all eligibility groups qualify for a spenddown. Parents and caretaker relatives with income above the MA limit who also exceed the asset limit may use the spenddown. Seniors and disabled adults with income above the MA limit may also qualify via spenddown. Talk to your county worker about whether spenddown applies to your situation. MN DHS form DHS-3017 explains how the spenddown is calculated.

Children and pregnant women: higher income limits

Minnesota provides some of the most generous income eligibility for children and pregnant women in the country. Pregnant women qualify at up to 275% FPL under MA, with no asset test. Infants under age 2 also qualify at 275% FPL. Children's income limits are set by age range and can be verified at mn.gov/dhs.

Children whose family income exceeds the MA limit for their age group may qualify for MinnesotaCare with a monthly premium, rather than being uninsured. Minnesota's system is intentionally structured so that uninsured children at nearly any income level have an insurance option.

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.

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 Minnesota's long-term care programs are on the seniors and long-term care page. The thresholds change, so verify current figures with Medical Assistance (Minnesota Medicaid) directly.