Delaware Medicaid Resource Limits Asset Test

A $2,001 checking account balance can disqualify an adult with a disability from Delaware Medicaid. The resource limit for disability-related and long-term care Medicaid is $2,000 for an individual and $3,000 for a couple — and Delaware enforces it at initial application. Understanding exactly what counts, what is excluded, and how the 2026 renewal rules have changed is the difference between maintaining coverage and losing access to Lifespan Waiver services.

What Counts as a Resource

The resource test looks at the total value of assets the individual owns and could convert to cash. Countable resources include:

• Bank accounts (checking, savings)
• Cash on hand
• Stocks, bonds, mutual funds
• Non-exempt real property (second homes, vacant land)
• Life insurance cash value and other assets not exempt under the applicable Medicaid category

Not counted: The treatment of a primary residence, vehicle, household goods, personal effects, burial arrangements, life insurance, and trusts depends on the Medicaid category and DSS rules. The first $100,000 in a DEPENDABLE ABLE account is excluded from the SSI resource count.

The Income Cap and Miller Trust

Delaware is a strict income-cap state for long-term care and waiver Medicaid. The gross monthly income limit is $2,485 (250% of the SSI federal benefit rate) in 2026. Unlike some states, Delaware does not allow individuals to "spend down" excess income on medical expenses to qualify.

If the young adult's total gross monthly income — SSI, DAC benefits, pension, wages — exceeds $2,485, they must establish a Qualified Income Trust (Miller Trust) to access Lifespan Waiver services. The trust is structured so that all income above $2,485 is deposited into the trust each month. Trust funds pay for the individual's cost of care. Any remaining balance at death is subject to state Medicaid recovery.

Most young adults receiving only SSI ($994/month) are well under the $2,485 threshold. The Miller Trust becomes necessary when a young adult receives DAC benefits on top of SSI, or when they earn wages that push their total above the cap.

The ASSIST Portal

Delaware's online ASSIST portal (assist.dhss.delaware.gov) is where families apply for and manage Medicaid coverage. Initial applications, renewals, and changes in circumstances are all processed through this system.

For disability-related Medicaid, the application requires the individual's personal financial information — income documentation and asset disclosures. The Division of Social Services (DSS) verifies assets through the federal Asset Verification System (AVS), which checks bank balances electronically, and may request paper bank statements or other documentation. Follow any document request from DSS.

Make sure the young adult's disability status is explicitly marked in the ASSIST portal. This matters because Delaware's Medicaid ENGAGE initiative introduces work and community engagement requirements starting January 1, 2027, for beneficiaries aged 19 to 64 under the Adult Expansion Group. Individuals with documented disabilities are exempt from these requirements — but only if the disability flag is active in their ASSIST record.

The Permanent Renewal Resource Test Waiver

Finalized in 2026, Delaware permanently waived the asset/resource test at the time of annual Medicaid renewal for specific non-MAGI groups, including disability-related Medicaid categories. This means DMMA no longer checks bank accounts through the Asset Verification System during routine renewals.

Two important limitations:

The initial application still requires full asset verification. The $2,000 resource limit applies at the point of first enrollment. The waiver only affects renewals.

Ex parte renewals are attempted first. Before mailing a renewal packet to the family, DMMA attempts an automated "ex parte" review using data from federal and state databases. If the automated review confirms continued eligibility, coverage is renewed without any family action. Manual renewal packets are mailed only when the ex parte process cannot verify eligibility automatically.

The practical impact: once the young adult clears the initial resource test and is enrolled in disability Medicaid, they do not need to prove their bank balance stays below $2,000 at each annual renewal. Combined with a DEPENDABLE ABLE account (whose first $100,000 is excluded from the initial resource test), this creates a sustainable path to savings.

Protecting Resources Before Application

Families preparing for the initial Medicaid application should organize the young adult's finances well before filing:

• Open a DEPENDABLE ABLE account and move savings into it (excluded from the resource test)
• Ensure the young adult's personal bank accounts hold $2,000 or less
• If the family has set up a Special Needs Trust, ask DSS or a qualified benefits attorney to confirm how the trust will be treated for this Medicaid category before filing
• Review any life insurance or burial funds with DSS before applying; treatment depends on the Medicaid category and DSS rules

The Delaware SSI at 18 & Adult Disability Benefits Guide includes a resource-tracking worksheet and step-by-step instructions for coordinating the Medicaid application with SSI, DDDS, and ABLE account setup.

See more Delaware guides →