Medicare can be a lifeline for healthcare coverage in retirement—but the costs can still be a strain for people on a limited income. That’s where the Medicare Savings Program (MSP) comes in. It’s a financial assistance program that helps eligible individuals pay for Medicare premiums, and in some cases, deductibles, copays, and coinsurance. If you or a loved one is struggling to afford Medicare costs, the MSP might offer the support you need to stay covered without sacrificing your budget.
What Is the Medicare Savings Program?
The Medicare Savings Program is a state-run program funded by both the federal and state governments. It helps people with limited income and resources pay for some or all of their Medicare-related costs.
There are four types of MSPs, each with different levels of support:
Qualified Medicare Beneficiary (QMB) Program
Specified Low-Income Medicare Beneficiary (SLMB) Program
Qualified Individual (QI) Program
Qualified Disabled and Working Individuals (QDWI) Program
These programs are available to people with Medicare Part A, and in many cases, they can also lead to automatic qualification for Extra Help with prescription drug costs.
What Does the Medicare Savings Program Cover?
Depending on which program you qualify for, the MSP can help pay for:
Medicare Part A premiums
Medicare Part B premiums
Deductibles
Coinsurance and copayments
Let’s break down the four types of MSPs and what they offer.
1. Qualified Medicare Beneficiary (QMB) Program
The QMB program provides the most comprehensive help.
It covers:
Part A premiums
Part B premiums
Deductibles, coinsurance, and copayments
Key advantage: If you’re enrolled in QMB, healthcare providers can’t bill you for services covered by Medicare (except for small prescription copays). This protection can save you hundreds—or even thousands—each year.
2. Specified Low-Income Medicare Beneficiary (SLMB) Program
SLMB helps pay only for the Part B premium.
It’s designed for people who have higher income than QMB limits but still need help affording Medicare.
3. Qualified Individual (QI) Program
The QI program also helps with Part B premiums, but unlike SLMB, it’s first-come, first-served and has limited funding.
You must reapply each year, and those who got benefits the previous year are prioritized.
4. Qualified Disabled and Working Individuals (QDWI) Program
This program is for people who:
Are under age 65
Have a disability
Returned to work and lost free Part A coverage
QDWI helps pay for Part A premiums so that coverage remains affordable.
Income and Resource Limits (2024 Guidelines)
Each program has income and asset limits, and they vary slightly depending on your state and whether you’re single or married.
Approximate monthly income limits (may vary by state):
| Program | Single | Married |
|---|---|---|
| QMB | $1,235 | $1,663 |
| SLMB | $1,478 | $1,992 |
| QI | $1,660 | $2,239 |
| QDWI | $4,945 | $6,659 |
Resource (asset) limits include things like savings accounts, stocks, and bonds, but not your home, car, or personal items.
| Program | Single | Married |
|---|---|---|
| QMB, SLMB, QI | $9,090 | $13,630 |
| QDWI | $4,000 | $6,000 |
Check with your state’s Medicaid office for exact limits in your area.
How to Apply for the Medicare Savings Program
You apply for MSP through your state Medicaid office—not Social Security or Medicare directly.
Steps to apply:
Find your state’s Medicaid office (visit Medicaid.gov for links)
Complete an application—this may be online, by mail, or in person
Provide documentation like proof of income, assets, and Medicare status
Wait for a decision—you’ll be notified by mail if approved
You can apply at any time during the year—there’s no open enrollment period for MSP.
Can You Have Both MSP and Extra Help?
Yes—and in fact, many people who qualify for MSP are automatically enrolled in Extra Help, which helps lower the cost of Medicare Part D (prescription drugs). Extra Help can reduce or eliminate:
Part D premiums
Deductibles
Copayments
That’s even more savings on top of what the Medicare Savings Program provides.
What If You’re Denied?
If your income is slightly too high, it’s still worth applying. Some states have more generous income guidelines or special rules that can help you qualify. You can also:
Request a reconsideration or appeal
Ask if spend-down programs are available to lower your countable income
Reapply later if your income or assets change
Final Thoughts
The Medicare Savings Program is an essential resource for people on fixed or limited incomes. If you’re struggling with Medicare premiums or out-of-pocket costs, you might qualify for help—potentially saving hundreds of dollars a month. The application process is straightforward, and the benefits can make a big difference. Don’t assume you won’t qualify—check your eligibility, gather your paperwork, and take the first step toward lowering your healthcare costs today.
