Which States Have No Asset Test for Medicare Savings Programs? (2026)

In 2026, 13 states plus the District of Columbia have no asset test for Medicare Savings Programs: Alabama, Arizona, Connecticut, Delaware, Louisiana, Maine, Massachusetts, Mississippi, New Mexico, New York, Oregon, Vermont, Washington, and D.C. In these places, only income matters, a parent with substantial retirement savings can still get the $202.90 monthly Part B premium paid. California is no longer on the list: it reinstated an asset test on January 1, 2026.

Medicare Savings Programs (MSPs) pay some or all of a beneficiary's Medicare costs, starting with the Part B premium, worth $2,434.80 per year in 2026. Historically, two hurdles kept people out: an income limit and an asset (resource) test that disqualified anyone with more than about $10,000 in countable savings.

Over the past decade, a growing group of states concluded that the asset test costs more to administer than it saves and dropped it entirely. If your parent lives in one of them, the only question is monthly income. Families routinely assume Grandma's $60,000 CD disqualifies her; in these states, it does not.

Which states have no asset test for Medicare Savings Programs in 2026?

Thirteen states plus D.C. impose no asset limit on Medicare Savings Programs in 2026: Alabama, Arizona, Connecticut, Delaware, Louisiana, Maine, Massachusetts, Mississippi, New Mexico, New York, Oregon, Vermont, Washington, and the District of Columbia, per the National Council on Aging's 2026 state-by-state MSP data.

Several of these states also raised income limits well above the federal floor, which makes them doubly generous:

State	Asset test	2026 QMB monthly income limit (single / couple)	Notes
Alabama	None	Federal: $1,350 / $1,824
Arizona	None	Federal: $1,350 / $1,824
Connecticut	None	$2,752 / $3,719	Highest tier (ALMB) reaches $3,209 / $4,336
Delaware	None	Federal: $1,350 / $1,824
District of Columbia	None	$4,010 / $5,430	QMB extends to 300% of the federal poverty level
Louisiana	None	Federal: $1,350 / $1,824
Maine	None	$2,481 / $3,357	QI tier reaches $3,345 / $4,529
Massachusetts	None	$2,385 / $3,237
Mississippi	None	Federal, plus a $50 income disregard
New Mexico	None	Federal: $1,350 / $1,824
New York	None	$1,856 / $2,509	QI tier reaches $2,494 / $3,375
Oregon	None	Federal: $1,350 / $1,824
Vermont	None	QMB extended to 150% FPL; SLMB tier ended Dec 31, 2025
Washington	None	Federal-level limits

Income limits above are drawn from the NCOA 2026 MSP eligibility tables (updated March 2026) and the SSA's 2026 federal MSP standards. States apply income disregards differently, so a parent slightly over these numbers should still apply.

Did California eliminate its asset test, and why is it not on the list?

No, not anymore. California eliminated its Medi-Cal asset test on January 1, 2024, then reinstated it on January 1, 2026 at $130,000 for an individual and $195,000 for a couple, under state budget legislation (AB 116). Many articles still list California as a no-asset-test state; as of 2026, that is outdated.

This is the single most common error in competing guides, so it deserves its own section. The sequence, documented in the California Department of Health Care Services guidance letter 25-18:

• January 1, 2024: California eliminated asset limits for all non-MAGI Medi-Cal programs, including Medicare Savings Programs.
• June 2025: Facing budget pressure, the state enacted AB 116, reversing course.
• January 1, 2026: Asset limits returned, $130,000 for one person, $195,000 for a couple, plus $65,000 for each additional household member.

Two silver linings for California families. First, the reinstated limits are roughly 13 times higher than the federal standard of $9,950 single / $14,910 couple, so most parents who qualified in 2025 still qualify. Second, certain programs, including the Disabled Adult Child and Disabled Widow(er) categories, remain exempt from the new limits per DHCS guidance.

If your parent is in California and was enrolled during the no-asset-test window, watch their renewal paperwork closely. Redeterminations in 2026 will ask about assets again, and an unanswered mailer can end coverage even when the parent still qualifies. Our redetermination guide covers how to respond.

What counts as an asset, and what never counts?

Countable assets include bank accounts, CDs, stocks, bonds, and retirement accounts. The home your parent lives in, one car, household goods, burial plots, and up to $1,500 in burial funds per person do not count. In 2026, states that still use the federal asset test apply limits of $9,950 for a single person and $14,910 for a couple.

The federal resource limits, published annually by SSA, are $9,950 / $14,910 for QMB, SLMB, and QI in 2026 (SSA POMS HI 00815.023). What families most often get wrong:

• The house never counts while your parent lives in it, regardless of value.
• One vehicle is excluded, no matter what it is worth.
• Life insurance counts only in some states and only above certain face values.
• Retirement accounts usually count, a $50,000 IRA disqualifies a parent in a strict-test state but is irrelevant in the 14 no-limit jurisdictions.

This is why geography matters so much. The same 78-year-old widow with $1,500 monthly income and $40,000 in savings qualifies for QMB in New York and is denied in New Jersey. Some states also set their own limits above the federal floor, Minnesota uses $10,000 / $18,000, for example, so always check the state's actual numbers rather than assuming the federal figure applies.

What do Medicare Savings Programs actually pay for?

All three main MSP tiers pay the Part B premium, $202.90 per month, or $2,434.80 per year in 2026. The most generous tier, QMB, also pays Medicare deductibles and coinsurance, and providers are federally prohibited from billing QMB enrollees for Medicare cost sharing. Every MSP enrollee also automatically gets Extra Help with drug costs.

The three tiers, per Medicare.gov:

1. QMB (Qualified Medicare Beneficiary). Pays Part A and Part B premiums plus deductibles, coinsurance, and copayments. Federal law bars providers from balance-billing QMB enrollees, if a bill arrives, it is illegal, not just wrong.
2. SLMB (Specified Low-Income Medicare Beneficiary). Pays the Part B premium only. Federal income limit: $1,616 / $2,184 monthly in 2026.
3. QI (Qualifying Individual). Pays the Part B premium only, at a slightly higher income limit, $1,816 / $2,455 monthly in 2026. Funded by annual allotment, so apply early in the year.

The quiet multiplier: MSP enrollment automatically qualifies your parent for Extra Help (the Part D Low-Income Subsidy), which the Social Security Administration values at about $5,700 per year in reduced drug costs (SSA). Combined, QMB plus Extra Help can be worth over $8,000 a year to a parent on a fixed income, for one application.

How does my parent apply in a no-asset-test state?

Apply through the state Medicaid agency, online, by mail, or in person, with proof of income (Social Security award letter, pension statements) but no asset documentation. Processing typically takes about 45 days. If approved for QMB, coverage starts the month after approval; SLMB and QI can be retroactive up to three months.

The practical steps:

1. Find the state application. Search "[state name] Medicare Savings Program application" or start at the state Medicaid site. In no-asset-test states, the MSP application is usually short, some are two pages.
2. Gather income proof only. The Social Security award letter (the annual "your new benefit amount" letter) covers most parents. Add pension or annuity statements if applicable.
3. File even if you think income is slightly too high. States apply income disregards, Mississippi disregards $50, Illinois $25, and every state disregards the first $20 of most income under federal rules. Some income (like part of wages) does not count at all.
4. Watch for the Extra Help letter. After MSP approval, SSA automatically applies Extra Help; a confirmation letter typically arrives within a few weeks.
5. Calendar the renewal. Most states renew MSPs annually. A missed renewal packet is the most common reason parents lose the benefit while still eligible.

Free one-on-one application help is available in every state through the State Health Insurance Assistance Program (SHIP), and many Area Agencies on Aging will complete the paperwork with your parent.

What if my parent's state still has an asset test?

Apply anyway before assuming disqualification. Countable assets are narrower than families expect, the home, one car, and burial arrangements are excluded, and some states set limits above the federal $9,950 / $14,910. If your parent is genuinely over the limit, legitimate spend-downs like prepaying funeral expenses or home repairs can bring them under it.

Three things to check before giving up:

• Your parent's state may have a higher limit than you think. Minnesota ($10,000 / $18,000) and several others exceed the federal floor, and states like Rhode Island are restructuring tiers in 2026 (folding SLMB into a broader QMB group effective February 1, 2026).
• Exclusions do heavy lifting. A parent with $30,000 "in assets" may have only $8,000 countable once the car, burial plot, prepaid funeral, and household goods are excluded.
• Legitimate spend-down is legal. Paying off debt, repairing the home, prepaying burial expenses, or replacing a failing car converts countable assets into excluded ones. This is different from gifting, which can trigger penalties for long-term-care Medicaid (though generally not for MSPs, rules differ by state, so confirm before transferring anything).

And keep watching the map. The no-asset-test list has changed almost every year for a decade, California's 2026 reversal shows it can move in both directions. A parent denied in 2023 may qualify today; a parent enrolled today should never ignore a renewal notice.