Tennessee Medicaid income limits
Last verified: June 2026
Verify current limits with TennCare (Tennessee Medicaid)
Tennessee is a non-expansion state with very narrow adult income limits
TennCare income limits by coverage group (2026)
Tennessee's TennCare income limits are significantly more restrictive than in Medicaid expansion states. Per the Bureau of TennCare and TennCare eligibility reference guide, the following income thresholds apply. These figures reflect 2025–2026 eligibility standards.
| Coverage group | Income limit (approx.) | Notes |
|---|---|---|
| Children ages 0–18 (TennCare) | up to ~133% FPL | Age and income-based |
| Children (CoverKids — CHIP) | up to 250% FPL | Separate application; small premium |
| Pregnant women | Varies — family of 3: <$66,625/yr | Includes CHIP-funded maternity coverage |
| Parents and caretaker relatives | ~95% FPL (very low) | Must have child under 18 in home |
| SSI recipients | SSI limit ($943/mo individual in 2025) | Automatic TennCare eligibility |
| Adults without children (non-expansion) | No income limit applies | Not eligible — no qualifying category |
| Nursing home / long-term care | 300% FBR (~$2,829/mo) | Asset limit applies separately |
Source: Bureau of TennCare eligibility information; TennCare FAQ (tn.gov/tenncare). The pregnant women figure is confirmed from TennCare's official FAQ: "a pregnant woman in a family of three may qualify if family income is less than $66,625." Parent and caretaker limits are approximate based on Tennessee's non-expansion baseline. Verify current figures at tn.gov/tenncare or call 1-855-259-0701.
The coverage gap in Tennessee
Tennessee's non-expansion status creates a significant gap in coverage. Adults between roughly 50% and 100% of the FPL — too poor to afford private insurance but earning too much for the very limited TennCare adult categories — have few options. They do not qualify for TennCare, and they cannot receive ACA marketplace premium tax credits (which start at 100% FPL).
If you fall into this gap, contact the Tennessee State Health Insurance Assistance Program (SHIP) at 1-877-801-0044 for guidance on what options may exist for your situation. Federally Qualified Health Centers (FQHCs) provide sliding-scale care to uninsured patients — use the HRSA Health Center Finder at findahealthcenter.hrsa.gov to locate one near you.
How TennCare counts income
For most TennCare categories, Tennessee uses Modified Adjusted Gross Income (MAGI) methodology — the same standard used in expansion states. MAGI includes wages, salaries, self-employment income, and certain other income. SSI benefits are generally excluded from MAGI for the purpose of determining eligibility for MAGI-based TennCare categories.
Long-term care programs, nursing home eligibility, and CHOICES waiver eligibility use non-MAGI rules with separate asset tests. For these programs, the asset limit is $2,000 for a single applicant. Contact TennCare Connect at 1-855-259-0701 or your local Area Agency on Aging and Disability at 1-866-836-6678 for LTC financial eligibility guidance.
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 Tennessee's long-term care programs are on the seniors and long-term care page. The thresholds change, so verify current figures with TennCare (Tennessee Medicaid) directly.