Alabama Medicaid income limits come in two versions, and which one applies depends on why you need coverage. For long-term-care coverage in 2026, a single applicant's gross income must be at or below $2,982 a month and countable assets at or below $2,000. That ceiling is hard: an applicant over it is not eligible unless the excess income goes into a Miller Trust. For children, pregnant women, and parents or caretaker relatives, a separate MAGI test applies instead, set as a percentage of the poverty level, with no asset test at all.,

This guide covers both. It walks through the 2026 MAGI limits, including why Alabama covers parents only to 13% of the poverty level and offers adults without dependent children no full-coverage pathway, and then the long-term-care rules for seniors and people with disabilities: the asset limit, the income cap and why an over-income applicant has to set up a Miller Trust, what a nursing-home resident keeps, what a spouse at home is protected from, the five-year look-back, and how to apply.,

In This Guide

Alabama Medicaid income limits under MAGI: the other income test

Everything above describes one of Alabama's two income tests. The $2,982/month figure is the long-term-care number: 300% of the SSI Federal Benefit Rate, the special income level Alabama applies to nursing-facility care and the Elderly and Disabled Waiver. It sits on the SSI-related aged, blind, and disabled (ABD) side of the system, and it is the right number only if you are seeking long-term care., Many people searching for an Alabama Medicaid income limit are not in that group.

The other test is MAGI, or Modified Adjusted Gross Income. It governs children, pregnant women, and parents or other caretaker relatives, and it is written as a percentage of the Federal Poverty Level (FPL) rather than a flat dollar cap. The two tests use different thresholds and different rules about assets.,

Group 2026 limit (% FPL)
Children ages 0-1, 1-5, and 6-18 141%
Pregnant women 141%
Separate CHIP (ALL Kids) 312%
Parents and other caretaker relatives 13%
Non-disabled, non-pregnant adults without dependent children No full-coverage pathway (Plan First covers family planning only)

These MAGI standards took effect in February 2026.

Two numbers, one rule: the Alabama Medicaid Agency's own 2026 chart states the children and pregnant-women groups at 146% FPL and parents at 18% FPL. Those are gross figures that already include the standard 5-percentage-point FPL disregard, and they net to the 141% and 13% effective levels shown on the CMS national table. If you see both sets of numbers, they describe the same limit.

Parents and caretaker relatives: 13% of the poverty level

For readers of this guide, this is the pathway that matters before 65. A grandparent raising a grandchild qualifies for Alabama Medicaid, if at all, through the parent-and-caretaker-relative group, and Alabama covers that group at 13% FPL, one of the lowest parent thresholds in the nation.

The reason is federal mechanics, not a 2026 policy choice. Parents and caretaker relatives are a federally mandatory Medicaid group, but unlike children (mandatory at a floor of 133% FPL) and the ACA new adult group (effectively 138% FPL), their mandatory coverage is pegged to the state's own old cash-welfare (AFDC) income standard rather than to a percentage of the poverty level. Federal rules set the floor at the state's May 1988 AFDC standard, converted to a MAGI equivalent, and cap how far a state may go above it: roughly, the higher of its 2010 or 2013 coverage level or its July 1996 AFDC standard raised by no more than inflation. Because the yardstick is the state's own old welfare standard, the figure can sit at 13% of the poverty level instead of somewhere near it.,,

There is no MAGI pathway for adults without dependent children

Alabama has not adopted the ACA Medicaid expansion. It is one of 10 states that have not. The expansion created the new adult group: people under 65, not pregnant, and not entitled to or enrolled in Medicare, with income up to an effective 138% FPL. In the 41 states including the District of Columbia that adopted it, that group is what covers a low-income adult who is not disabled and has no dependent children.

Alabama did not adopt it, so there is no expansion-adult pathway here for a non-disabled, non-pregnant adult without dependent children on the basis of income alone, at any income. The one income-tested option such an adult may find is Plan First, which the Alabama Medicaid Agency lists at the same 141% standard as children and pregnant women, but it covers family planning only (for women ages 19 to 55 who have not had surgery to prevent pregnancy, and vasectomies for men 21 or older), not general health care. Adults below the poverty level can fall into the coverage gap: too much income for Medicaid, too little for Marketplace premium subsidies.

The MAGI groups have no asset test

Federal law bars a state from applying any asset or resource test to the MAGI groups. A parent or caretaker relative in Alabama is judged on income alone: a savings account, a second vehicle, or an investment does not count against them at any amount. The $2,000 limit described above never reaches them.

That is not an Alabama choice either. Federal law writes the no-asset-test rule for the MAGI groups and expressly excepts people 65 or older, people evaluated on the basis of blindness or disability, and anyone requesting long-term care services, which is why the MAGI rule does not reach the long-term-care numbers at the top of this page. For those applicants, Alabama's own rule supplies the $2,000 resource test.

What changes at 65 in Alabama

In an expansion state, turning 65 closes the new adult group, because that group is written for people under 65 who are not entitled to or enrolled in Medicare. Alabama has no such group, so there is no 138% FPL adult benefit to lose here.

What changes at 65 in Alabama runs the other way: the SSI-related aged, blind, and disabled pathway becomes available on the basis of age. Before 65, an Alabama adult who is not disabled, not pregnant, and not caring for a dependent child has no full-coverage pathway, only the family-planning coverage of Plan First. At 65, the ABD track opens.,

That track runs on different arithmetic. The income yardstick becomes the SSI Federal Benefit Rate, $994/month for an individual in 2026, or 300% of that rate ($2,982/month) for nursing-facility care and the Elderly and Disabled Waiver., And a resource test appears, at the SSI standard of $2,000 in countable resources for an individual.

So the transition that catches Alabama families is about assets, not income. Under MAGI, the state looks at income and nothing else. On the ABD track, $10,000 in savings is $8,000 over the limit. The income never moved; the test did.,

The asset limit

The rest of this guide returns to the long-term-care and ABD track, where the $2,982/month cap and the asset limit below both apply.

Alabama's program, administered by the Alabama Medicaid Agency, sets its countable-asset limit at the SSI resource standard. A single applicant for nursing-home or waiver coverage may keep no more than $2,000 in countable resources. For a couple the SSI-related limit is $3,000, but when both spouses are institutionalized and both apply, each is treated as an individual, starting the first day of the month after both entered a facility.,

"Countable" is the word that carries the weight. Alabama excludes a list of assets from the count: your home (subject to the federal home-equity cap), one vehicle, household goods and personal effects, and designated burial funds (up to $5,000 for a nursing-home applicant). So the $2,000 applies to things like bank accounts, a second car, and investments, not the roof over your head.

Alabama's $2,000 limit is far tighter than some states allow: California, for one, reinstated a $130,000 asset limit for one person in 2026. For a single Alabama applicant, countable resources must be at or below $2,000 as of the first day of the month.

The Alabama Medicaid income limit: the income cap and the Miller Trust

For nursing-facility coverage, Alabama sets the 2026 income limit at $2,982/month for a single applicant. That figure is 300% of the SSI Federal Benefit Rate, which is $994 in 2026.,

The same $2,982 limit applies to the Elderly and Disabled Waiver, according to the Alabama Medicaid Agency's 2026 income-limits handout, but don't assume it governs every Alabama waiver. Alabama's rule sets a separate, far lower limit (the SSI Federal Benefit Rate plus a $20 general disregard) for certain waiver recipients who qualify for Medicaid only because they receive waiver services. Income under the limit is also not, by itself, a way into a waiver: the applicant must also need an institutional level of care and receive the waiver's services. For the Elderly and Disabled Waiver, that means meeting a nursing facility level of care.

Alabama is an income-cap state. If your gross monthly income is above $2,982, you are over the cap, and the Alabama Medicaid Agency's rule is blunt: unless the excess income goes into a Qualifying Income Trust, you will not be eligible.

The fix is a Qualified Income Trust, also called a Miller Trust. You establish the trust, and the income that goes into the trust account can be disregarded in the eligibility determination.

How the Miller Trust works in practice is mechanical. Each month, the applicant deposits the portion of gross income that exceeds the $2,982 cap into the trust, and that deposited income is disregarded when income eligibility is tested. Timing matters: the earliest month Alabama Medicaid can begin is the month the income actually goes into the trust account.

A Miller Trust must be drafted correctly and funded every month to do its job, so this is a step to set up with an elder-law attorney before applying, not after a denial.

Long-term care: what a nursing-home resident keeps

When Alabama Medicaid pays for nursing-facility care, the resident's monthly income goes toward the cost of care after a short list of deductions, such as allowances for a spouse or family at home and health-insurance premiums. The first deduction is what they keep for themselves: the Personal Needs Allowance (PNA), money reserved for small personal expenses such as clothing, a haircut, or a phone. Alabama sets its PNA at $30/month, the federal minimum and the lowest amount a state is permitted to set.,

The $30 is a floor, not a ceiling: a state is free to set its allowance higher, as Tennessee does at $70. Alabama keeps its at the floor., For a deeper look at how the allowance works and how it's calculated, see our explainer on the Medicaid personal needs allowance.

The five-year look-back

Alabama reviews asset transfers made in the 60 months before a long-term-care application., For a nursing-home applicant the window counts back from the first day of the month of the original application; for someone receiving home-and-community-based waiver services it counts back from that month or, if later, the month the assets were given away. Giving away money or property for less than fair market value during that window, gifting a grandchild a down payment or signing a house over to a child for a dollar, can trigger a penalty period during which Medicaid won't pay for long-term-care services, even though you're otherwise eligible.

There are legitimate exceptions (transfers between spouses, transfers to a blind or disabled child, certain caregiver-child home transfers) and legitimate planning approaches, but anything done inside the five-year window deserves an elder-law attorney's review first. If long-term care is on the horizon for someone in your family, talk to a professional before moving assets. For the broader toolkit, see our guide to Medicaid planning strategies.

Protecting the spouse who stays home

When one spouse needs long-term care and the other remains at home, federal spousal-impoverishment rules keep the at-home spouse from being left without resources. Alabama applies the federal figures for 2026:

Protection 2026 Amount What it does
Community Spouse Resource Allowance (CSRA) Half the couple's countable assets, up to the $162,660 standard; minimum $32,532 The countable assets the at-home spouse keeps under the standard formula, on top of the applicant's own $2,000.
Monthly Maintenance Needs Allowance From $2,705/month (effective 7/1/2026) up to the $4,066.50/month standard (effective 1/1/2026) The monthly income the at-home spouse is protected to under the standard formula; income can be shifted from the applicant to reach it.

So a married couple is in a very different position from a single applicant. Under the standard 2026 figures, the community spouse can hold up to $162,660 in countable assets and keep a monthly income allowance up to $4,066.50 while the other spouse receives Medicaid-funded care.

Those maximums are standards, not absolute ceilings. Federal law, which binds Alabama, lets a fair hearing or a court order set a higher resource allowance, and requires a higher income allowance where the at-home spouse shows exceptional circumstances causing significant financial duress. Alabama's own rule states the cap flatly and doesn't spell out that procedure, so confirm how to request it with the Alabama Medicaid Agency or an elder-law attorney.

After death: estate recovery

Like every state, Alabama runs a Medicaid estate-recovery program. When a recipient dies, Alabama seeks repayment from the estate of anyone who was 55 or older when they received Medicaid, for all approved medical assistance except Medicare cost sharing, and of a permanently institutionalized recipient of any age. Recovery waits until after the death of any surviving spouse, and it can proceed only when there is no surviving child under 21 and no blind or disabled child; a narrow undue-hardship waiver also exists., For the state-specific rules, exemptions, and hardship process, see our guide to Alabama Medicaid estate recovery, and for how recovery works nationally and where families have room to plan, see our Medicaid estate recovery explainer.

How to apply in Alabama

Alabama's long-term-care Medicaid is run by the Alabama Medicaid Agency. For waiver services, your local Area Agency on Aging can also help you start an application. Two places to start:

Alabama Medicaid Agency The state Medicaid agency, which publishes the 2026 income-limits handout for aged and disabled coverage. medicaid.alabama.gov
Area Agency on Aging (1-800-AGE-LINE) Start an application or learn about home- and community-based waiver services. 1-800-243-5463

Long-term-care applicants must also meet a medical test, not only the financial ones: for a nursing-home stay, a registered nurse on the facility's staff makes the level-of-care determination. If your income is over the $2,982 cap, don't assume you're shut out. A Miller Trust is the recognized route to qualify, and because eligibility can start no earlier than the month income goes into the trust, it's worth setting up before you apply rather than after a denial.

Frequently Asked Questions

What is the Alabama Medicaid income limit in 2026?

It depends on which coverage you need, because Alabama runs two income tests. For nursing-facility care and the Elderly and Disabled Waiver, the 2026 limit is $2,982/month for a single applicant, set at 300% of the SSI Federal Benefit Rate ($994); Alabama is an income-cap state, so income above that figure does not qualify unless the excess is routed through a Miller Trust. For children, pregnant women, and parents or caretaker relatives, the MAGI test applies instead: 141% of the federal poverty level for children and pregnant women, and 13% for parents and other caretaker relatives.

What is the Alabama Medicaid asset limit?

$2,000 in countable assets for a single long-term-care applicant, or $3,000 for a couple, though once both spouses are in a nursing home and both apply, each is treated as an individual from the following month. The home (subject to a federal equity cap), one vehicle, household goods, and designated burial funds (up to $5,000 for a nursing-home applicant) are exempt from the count. The asset limit applies only to the long-term-care and ABD track: federal law bars any asset test for the MAGI groups, so children, pregnant women, and parents or caretaker relatives are judged on income alone.

Can a low-income adult without children get Alabama Medicaid?

Not on the basis of income alone. Alabama has not adopted the ACA Medicaid expansion, so there is no "new adult group" pathway here for a non-disabled, non-pregnant adult without dependent children, at any income. The only income-tested option is Plan First, which covers family planning only, not general health care. The aged, blind, and disabled track becomes available at 65, or earlier on the basis of blindness or disability.

Does Alabama require a Miller Trust (Qualified Income Trust)?

Yes, for applicants over the income cap. An applicant whose gross income exceeds $2,982/month will not be eligible for long-term-care Medicaid unless the excess income goes into a Qualified Income Trust, and eligibility can begin no earlier than the month the income first goes into the trust account.

Can I spend down to qualify for Alabama Medicaid like in some other states?

Not for long-term care. Alabama is an income-cap state: the Alabama Medicaid Agency says an applicant over the $2,982 limit will not be eligible unless the excess income goes into a Qualified Income Trust. For an over-income applicant, the Miller Trust is the route.

How much can a spouse keep when the other goes into a nursing home?

Under the 2026 standards, the at-home (community) spouse can keep up to $162,660 in countable assets (the Community Spouse Resource Allowance, minimum $32,532) and a monthly income allowance from $2,705 up to $4,066.50, on top of the applicant's own $2,000 limit. Those are standards, not absolute ceilings: under federal law a fair hearing or court order can set them higher.

What does a nursing-home resident on Alabama Medicaid keep each month?

A Personal Needs Allowance of $30/month, the federal minimum. The rest of the resident's monthly income goes toward the cost of care, after deductions such as allowances for a spouse or family at home and health-insurance premiums.

Learn More

MedicaidMedicaid Income Limits by State: Which Number Applies to YouMedicaid income limits for 2026 depend on your pathway: expansion adults, aged and disabled, or nursing-home care. See the figures and your state's limits. MedicaidAlabama Medicaid: A Guide for Seniors and FamiliesAlabama Medicaid for seniors and families: 2026 income caps, the Miller Trust rule, asset limits, Medicare Savings Programs, and how to apply. MedicaidAlabama Medicare Savings ProgramsAlabama Medicare Savings Programs 2026: QMB, SLMB, and QI income limits, no asset test, Part B premium savings, Extra Help, and how to apply. MedicaidMedicaid Planning StrategiesSee which assets you keep, how the 5-year look-back works, and the legal moves that qualify you for Medicaid long-term care without losing the house. MedicaidHow Medicaid Estate Recovery WorksMedicaid estate recovery can claim a home after death, but not while a spouse or a child under 21, blind or disabled survives. See your state's rules. MedicaidThe Medicaid Personal Needs Allowance, ExplainedHow the Medicaid Personal Needs Allowance works in 2026: the $30 federal floor, what the states set, and how patient liability is calculated.

Find personalized help working through Alabama Medicaid eligibility and the Miller Trust route for your family at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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