ALTCS (Arizona Long Term Care System) is Arizona's Medicaid program for people who need nursing home level care. To qualify, you must meet both medical and money rules. The income and asset limits are strict. They are updated each year. Here are the current numbers for 2026.
2026 Monthly Income Limits
For one person, the most you can earn is $2,982 per month in gross income. For a married couple applying together, the combined limit is $5,964. This cap equals three times the federal SSI benefit rate.
Every source of income counts. This includes Social Security, pensions, IRA payouts, rental income, wages, and annuity payments.
When only one spouse applies for ALTCS, the other spouse's income usually does not count against them. Only the applicant's own income is checked against the $2,982 limit (source: AHCCCS Eligibility Requirements, February 2026).
2026 Asset Limits
A single ALTCS applicant may have no more than $2,000 in countable assets. This includes bank accounts, investments, cash value life insurance above $1,500, and most other money resources.
Some assets are exempt. These include your primary home (with equity up to $752,000), one vehicle, personal items, and prepaid funeral and burial plans.
For married couples, the non-applicant spouse may keep a portion of the couple's combined assets. This is called the Community Spouse Resource Allowance (CSRA). In 2026, the spouse may keep between $32,532 and $162,660. The exact amount depends on total countable assets at the time you apply.
There is also a Minimum Monthly Maintenance Needs Allowance (MMNA). This protects part of the applicant's income for the other spouse's living costs.
What If Income Exceeds the Limit?
If your income is above $2,982 per month, you may still qualify. The fix is a Miller Trust, also called an income only trust. This is an irrevocable trust that takes in your extra income each month. Once the money goes into the trust, it no longer counts toward the ALTCS limit.
Arizona requires the Miller Trust to name the state as a payback beneficiary. Any funds left when the person dies go back to the state. The payback is capped at the total ALTCS benefits paid (source: AHCCCS.gov).
Medical Requirements: Activities of Daily Living
Money rules are only part of the picture. ALTCS applicants must also show a medical need for nursing home level care. This is based on how well the person can do daily tasks like bathing, dressing, eating, and moving around.
A medical review decides if the person meets this standard. This is true even if they plan to get care at home rather than in a facility.
The Five-Year Lookback Period
ALTCS has a five-year lookback period. AHCCCS checks all asset transfers made within five years before the date you apply. Gifts or sales below fair market value during that window may lead to a penalty period. During the penalty, you cannot get ALTCS benefits.
The penalty is figured by dividing the transfer amount by the average monthly cost of nursing home care in Arizona.
Planning ahead makes a real difference. An experienced long-term care planning team can help you understand ALTCS rules. They can set up your assets the right way and help you avoid costly mistakes. That is how you protect what you have built.