16 Jun 2025 Medicaid Income Limits in Illinois: What You Need to Know
2025 Medicaid Income Limits in Illinois: What You Need to Know
If you’re wondering whether you qualify for Medicaid in Illinois, one of the most important factors is your monthly income. Illinois sets specific income thresholds that determine eligibility for different types of Medicaid, including long-term care in a nursing home, home-based services, and standard medical assistance under the Aged, Blind, and Disabled (ABD) program.
This guide breaks down the Illinois Medicaid income limits for 2025–2026, how they vary based on marital status and care type, and what to do if your income is too high.
How Much Can You Make and Still Qualify for Medicaid in Illinois (2025)?
In Illinois, a single senior applicant can earn up to $1,304 per month and still qualify for Medicaid long-term care or home-based services in 2025. Married couples applying together can earn up to $1,762/month combined. If only one spouse applies, only their income is usually counted (up to $1,304/month), and the other spouse’s income is often protected.
What’s the Maximum Income to Qualify for Medicaid in Illinois?
The maximum monthly income limits for seniors in Illinois (effective April 2025 – March 2026) are:
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$1,304/month for a single applicant
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$1,762/month for a married couple (both applying)
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$1,304/month if one spouse applies and the other does not
These limits apply to both Nursing Home Medicaid and Home and Community-Based Services Waivers.
Can You Get Medicaid in Illinois If You’re Over the Income Limit?
Yes, many people who are over the income limit still qualify for Medicaid in Illinois. This is done through:
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Miller Trusts (Qualified Income Trusts) to redirect excess income
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Spending down on medical expenses
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Exempting the spouse’s income if only one person is applying
If you’ve been denied due to income, it’s worth speaking with an elder law attorney about your options.
Does Household Size Affect Medicaid Eligibility?
Yes. For standard Aged, Blind, and Disabled (ABD) Medicaid, income limits are based on household size. For example, a single person has a lower limit than a household of two or more. However, for long-term care programs, only the applicant’s income is generally counted—especially if the other spouse is not applying.
What’s the Income Limit for Medicaid in Illinois?
The monthly income limit for Medicaid depends on the type of coverage you’re applying for and your household situation. The following table outlines the 2025 income limits for seniors applying for Medicaid in Illinois:
Illinois Medicaid Income Limits (Effective April 2025 – March 2026)
| Medicaid Program | Single Applicant | Married Applicants (Both Applying) | Married (One Applying) |
|---|---|---|---|
| Nursing Home Medicaid | $1,304/month | $1,762/month | $1,304/month (applicant only) |
| Home & Community-Based Services (HCBS) Waivers | $1,304/month | $1,762/month | $1,304/month (applicant only) |
| Aged, Blind, and Disabled (ABD) Medicaid | $1,304/month | $1,762/month | $1,762/month |
Note: Income thresholds are based on 100% of the Federal Poverty Level (FPL) for ABD Medicaid, and up to 300% of the Federal Benefit Rate (FBR) for long-term care coverage.
How Much Can I Make and Still Get Medicaid in Illinois?
In 2025, a single applicant for long-term care Medicaid in Illinois can earn up to $1,304 per month and still qualify. Married couples applying together can have a combined monthly income of up to $1,762. If only one spouse is applying, only the applicant’s income is counted toward the limit in most cases.
Even if your income exceeds these amounts, you may still qualify through legal planning strategies or special Medicaid pathways.
What Happens If Your Income Is Too High?
Exceeding the income limit does not automatically disqualify you from receiving Medicaid in Illinois. There are legal tools and planning strategies that can help:
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Qualified Income Trusts (Miller Trusts): These trusts allow applicants to redirect income in a way that brings them below the eligibility threshold.
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Medically Needy Pathway: In some cases, Illinois may consider your out-of-pocket medical expenses when determining eligibility.
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Spousal Income Protections: If only one spouse is applying, the non-applicant spouse is often allowed to keep a significant portion of household income to maintain their standard of living.
Consulting a Medicaid planning attorney can be crucial if your income is above the limit but you still require long-term care.
Income Treatment: Nursing Homes vs. Home Care
Nursing Home Medicaid:
Applicants who qualify for institutional Medicaid in Illinois must pay nearly all of their monthly income toward their cost of care. A small Personal Needs Allowance (typically $30–$100 per month) is the only income they’re allowed to keep.
Home and Community-Based Services (HCBS) Waivers:
Applicants receiving care at home can retain more of their income to cover basic living expenses such as rent, groceries, and utilities, which continue even while receiving Medicaid-funded services.
What to Do Next If You’re Not Sure You Qualify
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Compare your income to the limits above
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Consider any out-of-pocket medical expenses
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Talk to an elder law or Medicaid planning attorney
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Ask about setting up a Qualified Income Trust (Miller Trust)
Conclusion
Illinois Medicaid offers several paths to eligibility for seniors, each with its own income limits and rules. Whether you’re applying for nursing home coverage or home-based assistance, understanding these limits is the first step to protecting your health and finances.
If your income is slightly over the limit, don’t give up. With proper planning—such as setting up a Qualified Income Trust or working with an experienced elder law attorney—you may still qualify for the care you need.
Need Help Navigating Medicaid in Illinois?
Our team specializes in helping families understand Medicaid eligibility and protect their assets through proper planning. [Contact us] to schedule a free consultation or learn more about your options.
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