Each Medicaid program has different income limits and different rules about what counts as income. Read about the income limits for each program below.
Medicaid for Children and Adults (MCA) & Dr. Dynasaur
Eligibility for Medicaid for Adults and Dr. Dynasaur (for children and pregnant people) are based on Federal Poverty Level (FPL) income guidelines.
- The monthly income limit for adults ages 19 through 64, who are not pregnant, blind or disabled, is 138% FPL.
- The monthly income limit for children under age 19 is 317% FPL.
- The monthly income limit for Vermonters who are pregnant is 213% FPL.
Vermont Health Connect will count most types of taxable income when they check to see if you qualify. They will not count money you put in a 401K or Traditional Roth IRA.
Learn more about what services are covered and how to apply on our Medicaid for Adults and Dr. Dynasaur webpages.
Medicaid for the Aged, Blind and Disabled (MABD)
Eligibility for Medicaid for the Aged, Blind and Disabled (MABD) is based on both income and resources.
- In 2026, the monthly income limit for adults who are blind or disabled, or over the age of 65, is $1,375 if you live outside of Chittenden County. It is $1,483 if you live inside Chittenden County.
- There is also a resource test. For more information, please see our Resource Limits – Medicaid page.
Learn more about what services are covered and how to apply on our Medicaid for the Aged, Blind and Disabled (MABD) page.
Medicaid for Working People with Disabilities (MWPD)
Eligibility for Medicaid for Working People with Disabilities (MWPD) is based on Federal Poverty Level (FPL) income guidelines. Medicaid for Working People with Disabilities has higher income and resource eligibility guidelines than MABD.
- The monthly income limit for individuals who are blind or disabled, and who work at least a few hours each month, is 250% FPL.
- There is also a resource test. See our Resource Limits – Medicaid page.
Learn more about what services are covered and how to apply on our Medicaid for Working People with Disabilities (MWPD) page.
What income counts for Medicaid for the Aged Blind and Disabled (MABD) and Medicaid for Working People with Disabilities (MWPD)
The state will count your “earned” and “unearned” income differently when they check to see if you qualify for MABD or MWPD.
- Earned: A paycheck from your current employer is considered “earned.” The state does not count every dollar of your earned income. The state will count about half of what you earn.
- Unearned: Any income that is not from a current job is considered “unearned.” For example, things like Social Security benefits, Veterans benefits, unemployment benefits and pensions are considered “unearned.” The state will count most of that money.
If you have questions about how your income will be counted, please contact the Office of the Health Care Advocate: 1-800-917-7787.
Long-Term Care Medicaid (Choices for Care)
Visit the Choices for Care section of this website for more information.
Are you getting a lump-sum payment or inheritance? Call us to find out how it will impact your Medicaid.
A “lump sum” is a one-time or irregular payment. It could be an award or settlement from a lawsuit, money from selling your home or vehicle, an insurance payout, an award of retroactive benefits from Social Security or SSI, or an inheritance. Lump sums often count as monthly income in the month they are received.
For example, if you receive a lump sum in November, the lump sum and your regular monthly income will be counted in November. If you go over the income limit, your Medicaid benefits may stop until you prove you are under the income limit again.
You may be able to prevent this with some planning. Contact us for advice about preparing to receive a lump sum, or if you have a notice that says your Medicaid is being stopped because you are over the income limit. Contact us at the Office of the Health Care Advocate (HCA) for help and advice. Fill out our form or call 1-800-917-7787. Our help is free.
In most cases, you must report the lump sum to Medicaid with 10 days of receiving it.
After the month you receive the lump sum, in most cases any remaining value of the lump sum counts as a “resource.” There are some special rules when you get a retroactive benefit award from Social Security. That is excluded for nine months beginning with the month after the receipt. There is a resource limit for adults who are blind or disabled, or over the age of 65. For more information, see our Resource Limits – Medicaid page.
Spending down your income
If your income is above the limit, you may be able to qualify for Medicaid by “spending down” your extra income on medical expenses for you, your spouse or children. Some examples include: health insurance premiums, deductibles, co-payments and uncovered medical items or services, over-the-counter drugs and past outstanding medical bills.
