Arizona Medicaid Asset Limits

Last updated: August 21, 2026 Jurisdiction: Arizona

Arizona ALTCS resource and income rules

AHCCCS’s February 2026 eligibility chart lists an ALTCS gross-income standard of 300% of the Federal Benefit Rate, or $2,982 per month for an individual, and an individual ALTCS resource limit of $2,000. The chart also says a person must require nursing-home level of care or its equivalent and may have a share of cost (AHCCCS February 2026 eligibility chart). This is an income-cap framework: being over the cap is not simply resolved by ordinary medical spending.

AHCCCS’s policy calls the permitted income trust an Income-Only Trust (IOT), and calls it a stream-of-income, income-cap, or Miller trust. The policy says an IOT can permit ALTCS qualification when the 300% Federal Benefit Rate gross-income test applies; it can be funded only with the customer’s income and must begin with a zero balance (AHCCCS Income-Only Trust policy). The same policy says an IOT cannot help when the net-income test is used, so the living arrangement and applicable test must be checked before relying on a trust (AHCCCS Income-Only Trust policy).

Couples and community-spouse protections

The simple $2,000 individual rule is not the entire answer for a married applicant whose spouse remains in the community. AHCCCS refers to the protected set-aside as the Community Spouse Resource Deduction, or CSRD. Its current 2026 examples use a minimum CSRD of $32,532 and a maximum CSRD of $162,660; the spouse’s share of countable resources is calculated within that range (AHCCCS 2026 CSRD examples).

AHCCCS’s consumer community-spouse material explains the sequence: count the couple’s resources in the application month, subtract the CSRD, and compare the remainder with the applicant’s $2,000 ALTCS limit. It also says that after the first 12 months of eligibility, resources in the ALTCS customer’s name must be at or below $2,000 (AHCCCS community-spouse information sheet). An older AHCCCS policy manual describes a $3,000 couple resource limit in the general ALTCS summary, but a community-spouse case is governed by the more specific resource-assessment and CSRD rules, so it should not be reduced to a generic married-couple number (AHCCCS eligibility policy manual).

Home equity needs a current confirmation

AHCCCS excludes a home or life-estate interest when the customer or spouse lives there, when a spouse or dependent relative remains in the home during institutionalization, or when a returning-home condition is met. Its published policy also says a home in a trust or an out-of-state home does not receive that home-property exclusion (AHCCCS home-property policy).

The last clearly displayed amount in the located live AHCCCS home-equity table is $713,000 for calendar year 2024; above that amount, the policy says the person can receive ALTCS acute-care services but not long-term-care services, subject to listed spouse, child, and hardship exceptions (AHCCCS home-property policy). That table does not display a 2026 amount in the source reviewed here. Confirm the live 2026 Arizona limit directly with AHCCCS before planning around home equity.

2026 verified figures: $2,982 monthly individual income cap; $2,000 individual ALTCS resource limit; and a $32,532 to $162,660 community-spouse resource deduction. The home-equity figure should be rechecked because the located AHCCCS table shows 2024, not 2026 (AHCCCS eligibility chart; AHCCCS CSRD examples).

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Arizona ALTCS resource and income rules

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