Michigan Medicaid income and asset limits for older adults, and what they mean for Home Help

The short answerHome Help is paid by Michigan Medicaid, so your parent needs Medicaid first. For people who are aged or disabled, one Medicaid category is called AD-Care (BEM 163). Michigan's own eligibility manual sets its countable asset limit at $9,950 for one person and $14,910 for a couple (from January 1, 2026), and its income limit at the federal poverty level, plus a $20 disregard for Social Security. For AD-Care, the home your parent owns and lives in, and one vehicle, do not count. If income is a little over, a Medicaid deductible may still work with Home Help. MDHHS decides every case.

Families usually start here: Mom needs help at home, someone mentions Home Help, and the first question is whether she would even qualify for Medicaid. This guide sets out what Michigan's published rules say, in plain words, with the manual section for each point so you can check it yourself or show it to a caseworker.

Why Medicaid comes first

Michigan's Adult Services Manual (ASM 105) lists what Home Help needs: Medicaid eligibility, a certification of medical need, and a need for help shown in an in-person assessment (at least one everyday activity, such as bathing, rated at level 3 or higher). It also says Home Help payments cannot be authorized before Medicaid eligibility is established. The county Adult Services Worker can open a case while the Medicaid application is in progress and help with it.

The asset limit: $9,950 for one person in 2026

AD-Care is the Medicaid category for people who are aged or disabled whose income is at or below the poverty level (BEM 163). Its asset limit is in BEM 400. Michigan raised these limits in 2025 from the old $2,000 and $3,000 levels, and they now go up each January:

• One person: $9,950 from January 1, 2026 ($9,660 in 2025)
• Two people (a married couple): $14,910 from January 1, 2026 ($14,470 in 2025)

"Countable" assets are things like cash, checking and savings accounts and investments. The manual has many more rules, and some depend on the person's situation, so treat this as the headline, not the whole list.

What does not count

For SSI-related Medicaid, which includes AD-Care, BEM 400 excludes:

• The home. One homestead: the home your parent owns and lives in, the land under it and related buildings on adjoining land. Income-producing property on that land is not part of it. The manual also covers a homestead the owner is away from, if they intend to return, or if they are in a hospital, a nursing home, an adult foster care home or a home for the aged.
• One vehicle. One motorized vehicle owned by the household. If there are several, the one with the highest equity value is excluded (after any employment-related exclusions).

Giving away money or property is covered by a separate policy on divestment (BEM 405), which this guide does not explain. Ask MDHHS or a licensed attorney before moving any assets.

The income limit: the federal poverty level

BEM 163 says AD-Care net income cannot exceed 100 percent of the poverty level. The State's reference table, RFT 242, adds a $20 disregard for Social Security income. The version we could read, effective April 1, 2025, lists:

• One person: $1,325 a month
• Two people: $1,783 a month

MDHHS's bulletin log shows a cost-of-living update to these limits effective April 1, 2026 (RFB 2026-004). We could not open the updated table, so the 2026 figures are higher than the ones above and we have not confirmed the amounts. Check the current RFT 242 or ask your county office before deciding anything.

Over the income limit? Ask about the personal care option

Some people have income a little above the limit. They may still get Medicaid with a deductible (sometimes called a spend-down): an amount of medical costs they are responsible for each month before Medicaid pays.

ASM 105 describes a Medicaid personal care option for exactly this case. If a Home Help case is open, the person meets every Medicaid rule except income, is eligible for personal care services, and the cost of that care is more than their excess income, the deductible counts as met. Then:

• the State's Home Help payment is reduced by the deductible amount, and
• your parent pays that deductible amount to the caregiver each month.

The Adult Services Worker sets this up with the Medicaid eligibility specialist. The manual adds that this option cannot continue if the cost of personal care becomes equal to or less than the excess income amount. If your parent has a deductible, ask the worker about it by name.

Our guide to the Michigan Medicaid deductible explains how the monthly amount is figured and what bills count.

How to apply for Medicaid

1. Apply through MDHHS, online at MI Bridges or at your county MDHHS office. Our guide to contacting your county office has the State's phone numbers.
2. Ask for Home Help at the same time, so an Adult Services Worker can open a case and help with the Medicaid side.
3. Have a medical professional complete the DHS-54A. See our DHS-54A guide.

For the full Home Help steps, read who qualifies for Michigan Home Help, and how to apply.

Questions families ask

What is the Medicaid asset limit in Michigan for a senior living at home?

For Michigan's AD-Care category (Medicaid for people who are aged or disabled), the State's eligibility manual (BEM 400) sets the countable asset limit at $9,950 for one person and $14,910 for two, effective January 1, 2026. Some things, such as the home a person lives in and one vehicle, are not counted.

What is the Medicaid income limit for seniors in Michigan?

For AD-Care, net income cannot exceed 100 percent of the federal poverty level, with a $20 disregard for Social Security income (BEM 163 and RFT 242). The State's table effective April 1, 2025 lists $1,325 a month for one person and $1,783 for two. MDHHS issued a cost-of-living update effective April 1, 2026, so check the current RFT 242 table for this year's figures.

Does my parent's house count toward the Medicaid asset limit?

For SSI-related Medicaid, which includes AD-Care, BEM 400 excludes one homestead: the home the person lives in and owns, the land it sits on and related buildings on adjoining land. Income-producing property on the land is not part of the homestead.

Can my parent get Home Help if their income is over the limit?

It depends on the case, and MDHHS decides. People over the income limit may have a Medicaid deductible. Michigan's Adult Services Manual (ASM 105) describes a personal care option: when a Home Help case is open, the person meets every Medicaid factor except income, and the cost of personal care is more than their excess income, the deductible counts as met. The Home Help payment is then reduced by the deductible, and the client pays that amount to the caregiver each month. The State decides each case.

Who decides if my parent qualifies?

MDHHS does. A Medicaid eligibility specialist decides Medicaid, and an Adult Services Worker decides Home Help after an in-person assessment. This guide explains the published rules; it cannot tell you whether a particular person qualifies.