You Can Get Help with Medicare (Part A and Part B) Costs if You Qualify
Medicare Savings Programs (MSP) are state programs for people with limited income and assets
Reviewed by: Brett Braithwaite, Licensed Insurance Agent.
Key Takeaways
Medicare Savings Programs (MSP) are federally funded and administered by each state.
MSPs help pay some or all of Medicare premiums, deductibles, copayments and coinsurance.
There are four different types of MSP, which have separate income and resource limits.
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Medicare Savings Program Coverage
Medicare Savings Programs (MSP) assist people with limited income in paying some or all Medicare:
- premiums.
- deductibles.
- copayments.
- coinsurance.
- Might pay for other cost-sharing expenses, depending on your income.
MSP are associated with Medicaid, as they are Medicaid-administered programs that help people covered by Medicare but have limited income and resources.
Types of Medicare Savings Programs
There are four different types of MSP. Each program has separate income and resource requirements for both individuals and married couples.
Qualified Medicare Beneficiary (QMB) Program
The program helps pay for Part A premiums, Part B premiums, deductibles, coinsurance and copayments.
- Individual monthly income limit: $1,084
- Married couple monthly income limit: $1,457
- Individual resource limit: $7,860
- Married couple resource limit: $11,800
Specified Low-Income Medicare Beneficiary (SLMB) Program
A state program that helps pay Part B premiums for people with Part A and limited income and resources.
- Individual monthly income limit: $1,296
- Married couple monthly income limit: $1,744
- Individual resource limit: $7,860
- Married couple resource limit: $11,800
Qualifying Individual (QI) Program
A state program that helps pay Part B premiums for people with Part A and limited income and resources. You must apply each year for these benefits, which people receive on a first-come, first-serve basis. Priority goes to those people that receive benefits in the previous year.
- Individual monthly income limit: $1,456
- Married couple monthly income limit: $1,960
- Individual resource limit: $7,860
- Married couple resource limit: $11,800
Qualified Disabled and Working Individuals (QDWI) Program
This program helps pay the Part A premium. You may qualify if you’re a working disabled person under the age of 65, you lost your premium-free Part A when you returned to work, you are not receiving medical assistance from your state or you meet the income and resource limits required by your state.
- Individual monthly income limit: $4,339
- Married couple monthly income limit: $5,833
- Individual resource limit: $4,000
- Married couple resource limit: $6,000
Eligibility for Medicare Savings Programs
These programs are federally funded but administered on the state level, and you must qualify for the program.
Suppose you either have or are eligible for Medicare Part A. In that case, your income is at or below the income limits. You can call your State Medicaid Program to see if you qualify for any of the programs. If your income or resources are higher than what is listed above, you can still call and see if you are eligible for these programs.
Each state has different eligibility requirements for MSP. Although states require people to meet monthly income limits, these limits can vary from state to state. Some states have asset limits for MSPs, but in all states, these specific resources will never count as assets:
- your primary house
- one of your cars
- household goods
- wedding rings
- burial spaces and burial funds
- life insurance with a cash value of less than $1,500
For more information on your state’s requirements, call your local Medicaid office.
State vs. Federal programs
The federal government funds MSPs, but each state administers its programs. If you enroll under an MSP, you will auto-enroll in Extra Help. This program helps to pay most of your Medicare Part D costs. Extra Help is worth about $5,000 per year.
FAQs
Are Social Security Medicare Savings Programs and Medicare Savings Programs different?
No, the Social Security Administration (SSA) works with states to improve program participation and ensures that MSP-related responsibilities are clearly defined. [1]
Does Medicare look at your bank account for MSP?
Each state has its specific eligibility requirements and will likely ask for recent statements for bank accounts, annuities, stocks and bonds, or proof of income to determine eligibility.
Does MSP look at the individual or couple's income?
If you are married, your income will be considered based on the married couple’s income limit. If you are not married, your income will be considered based on the individual income limit.