Medicare Savings Program: Get Help with Medicare Part A and B Costs, If You Qualify
Key Takeaways
- Medicare Savings Programs (MSP) help pay the medical costs for Medicare beneficiaries who have limited income and resources.
- There are four different MSPs, each with varying standards of eligibility and benefits.
- Depending on the MSP you qualify for, you may get help paying your deductibleA deductible is an amount you pay out of pocket before your insurance company covers its portion of your medical bills. For example: If your deductible is $1,000, your insurance company will not cover any costs until you pay the first $1,000 yourself. , premiumsA premium is a fee you pay to your insurance company for health plan coverage. This is usually a monthly cost. , copaymentsA copayment is the fixed amount you pay directly to your provider for medical services or prescription drugs covered in your plan. For example: If your plan includes a copayment of $20 for office visits, you’ll pay $20 to your doctor whenever you have an appointment. and coinsurance.
If you need help to pay for Medicare, a Medicare Savings Program (MSP) may cover many of your costs. MSPs are federally funded programs that pay Original Medicare costs for older Americans with limited income and resources. If you qualify, Medicare Savings Programs can help with:
MSPs are run by the states and provide an essential financial safety net for many older Americans. To see if an MSP can help you, you’ll need to know what they are, who qualifies, and how to sign up.
What Medicare coverage is right for my specific situation?
What Are the 4 Medicare Savings Programs?
There are four Medicare Savings Programs, and each is designed to help adults with different levels of income and resources. If you have Original Medicare (Parts A and B) and have trouble paying your medical bills, one of these four programs may be able to help you:
Qualified Medicare Beneficiary (QMB) Program: A QMB can help pay for Part A and B premiums, deductibles, copays and coinsurance. This Medicare Savings Program has the lowest income and resource limits and qualifies you for the Part D Extra Help program to help cover prescription costs.
Specified Low-Income Medicare Beneficiary (SLMB) Program: SLMB is a state-based Medicare Savings Program that helps pay for Part B premiums. You can have a higher income than with QMB, but you must be enrolled in Medicare Part A. Like the QMB, you’ll automatically get help with prescription drugs.
Qualifying Individual (QI) Program: The QI will help pay your Part B premium if you qualify. The QI is similar to the SLMB but has higher income limits. QI recipients are required to reapply each year. QI recipients are also enrolled in Part D Extra Help.
Qualified Disabled and Working Individuals (QDWI) Program: The QDWI helps pay Part A premiums for eligible people for one of several reasons. These include:
- You’re working, disabled and under 65
- You returned to work and lost your premium-free Part A and Social Security disability benefits
- You meet your state’s income and resource limits
- You are not getting medical assistance from your state
What Is the Income Limit for the Medicare Savings Program?
Each MSP was created to help different groups of people pay for their Medicare costs. Because of this, each Medicare Savings Program has different income and resource limits you’ll need to meet to qualify. These limits get adjusted each year. For 2025, the Medicare Savings Program income and resource limits are:
Qualified Medicare Beneficiary (QMB) Program
- Individual monthly income limit: $1,325
- Married couple monthly income limit: $1,783
- Individual resource limit: $9,660
- Married couple resource limit: $14,470
Specified Low-Income Medicare Beneficiary (SLMB) Program
- Individual monthly income limit: $1,585
- Married couple monthly income limit: $2,135
- Individual resource limit: $9,660
- Married couple resource limit: $14,470
Qualifying Individual (QI) Program
- Individual monthly income limit: $1,781
- Married couple monthly income limit: $2,400
- Individual resource limit: $9,660
- Married couple resource limit: $14,470
Qualified Disabled and Working Individuals (QDWI) Program
- Individual monthly income limit: $5,302
- Married couple monthly income limit: $7,135
- Individual resource limit: $4,000
- Married couple resource limit: $6,000
Note that limits are slightly higher in Alaska and Hawaii, so you may qualify even if your income is higher than the limits above.
Have questions about your Medicare coverage?
Who Is Eligible for Medicare Savings Programs?
Medicare Savings Programs are designed to help people with limited incomes and resources afford Medicare health coverage. Because each MSP is administered at the state level, there may be different qualifying factors based on where you live.
Even if you don’t meet the income or resource requirements above, you may qualify for a Medicare Savings Program. To find out, you can contact your local Medicaid office.
What Doesn’t Count as Resources?
Each MSP has resource limits. Resources typically refer to the money you have in the bank, stocks and bonds. Because MSPs are state-run programs, these limits may vary based on where you live. But despite the differences between states, there are a few personal items that do not count as resources, no matter where you live:
- Your primary home
- One of your cars
- Burial spaces and burial funds up to $1,500
- Life insurance with a cash value of less than $1,500
- Furniture
To find out if you meet your MSP’s resource limits, give your local Medicaid office a call.
How to Apply to the Medicare Savings Program
To apply for a Medicare Savings Program, you’ll need to contact your State Health Insurance Assistance Program (SHIP). These state-run organizations receive federal funding to help provide financial assistance through MSPs and Part D Extra Help. You can also contact a licensed insurance agent, like the ones at GoHealth. They can look at your income and resources and examine which Medicare Savings Programs you may qualify for.
How Much Money Can You Have in the Bank on Medicare?
Money in bank accounts is considered a resource when determining whether you’re eligible for a Medicare Savings Plan. This amount changes depending on which Medicare Savings Program you qualify for. Just like with income limits, your state may accept your application if your resources are higher than the limits allowed. To see if you are eligible, contact your local SHIP.
My Medicare coverage doesn’t address all of my needs.
Sources
- Medicare Savings Programs.Medicare.gov.