Quick Summary

Every year, the financial numbers used to determine Medicaid eligibility change slightly. These numbers affect how much someone can keep, how income is treated, and how penalties are calculated when assets are transferred.

Here’s a summary of the 2026 Michigan Medicaid eligibility figures families should understand when planning for long-term care. Even small changes in these numbers can make a meaningful difference in planning decisions.

The Key Asset Limits for 2026

For a single individual applying for Medicaid long-term care benefits in Michigan, the resource limit is $9,950 (note this used to be $2,000).

That means most countable assets must be reduced to that level before eligibility begins.

Some assets are not counted, including certain funeral arrangements, limited life insurance, a vehicle, and your home (so long as it’s within allowable equity limits).

For 2026, the home equity limit is $752,000.

This is important because many families assume a home automatically disqualifies someone from Medicaid — but that is not true if the home exceeds the equity limits.

Divestment Penalty Divisor

When assets are transferred during the Medicaid look-back period, a penalty period can apply.

For 2026, the divestment penalty divisor is $12,216.30 per month.

This number determines how long Medicaid will delay benefits after an improper transfer (improper transfers include, among other things, gifts and transfers for less than fair market value).

For example, a $122,163 transfer could result in roughly a 10-month penalty period.

This is why timing and planning matter so much.

Personal Needs Allowance

Once someone is receiving Medicaid in a nursing facility, they do not keep all of their income.

For 2026, the personal needs allowance is $60 per month.

That amount is intended to cover personal expenses like clothing, toiletries, and small purchases.

Note that there are formulas for married Medicaid applicants that may allow some or all of the Medicaid applicant’s income to be kept by the spouse outside the nursing home.

Spousal Protection Numbers

When one spouse needs nursing home care and the other remains at home, special rules protect the community spouse from financial hardship.

For 2026:

  • Minimum Community Spouse Resource Allowance: $32,532 (this is the least amount that the spouse outside the nursing home can keep).

  • Maximum Community Spouse Resource Allowance: $162,660 (this is the most that the spouse outside the nursing home can keep — BUT, there are other more sophisticated planning strategies that allow a spouse to keep much more, in many cases 100% of the couples’ assets.

  • Minimum Monthly Maintenance Needs Allowance: $2,643.75 (the minimum income the spouse outside the nursing home can keep).

  • Maximum Monthly Maintenance Needs Allowance: $4,066.50 (the maximum income the spouse outside the nursing home can keep — BUT, there are other strategies that may allow the spouse outside the nursing home to keep more (or all) of the nursing home applicant’s income.

These numbers exist to make sure the healthy spouse can continue living independently.

Funeral and Insurance Limits

Certain planning tools remain available even when applying for Medicaid.

For 2026:

  • Funeral expense products up to $15,870 may be exempt when properly structured.

  • Life insurance cash value is typically exempt up to $1,500.

These rules can be important when preparing for eligibility.

Simple Lesson

Medicaid planning is not just about legal rules — it’s about numbers, and those numbers change every year.

Understanding the current limits helps families avoid mistakes, protect the healthy spouse, and make better long-term care decisions.

Planning early almost always creates more options than waiting until a crisis.

If you ever want to talk through your situation, we’re here to help. Call us at (517) 548-7400 or click here to contact us.