Medicare Savings Programs: Financial Help You May Qualify For
Key Takeaways
- Medicare Savings Programs can save you $2,000–$10,000+ per year on Medicare costs
- Millions of eligible seniors don't apply — an estimated 2-3 million leave benefits on the table
- Qualifying for MSP automatically qualifies you for Extra Help with drug costs
- Income limits are higher than you might think — individuals earning up to ~$1,700/month may qualify
Table of Contents
What Are Medicare Savings Programs?
Medicare Savings Programs (MSPs) are federally-funded, state-administered programs that help people with limited income and resources pay for their Medicare costs. These programs can cover your Part B premium ($202.90/month in 2026), Part A premium, deductibles, copayments, and coinsurance.
Despite being available to millions of Americans, an estimated 2-3 million eligible Medicare beneficiaries don't apply — leaving thousands of dollars in benefits unused every year. Many people assume they won't qualify, but the income limits are higher than you might expect.
Another powerful incentive: qualifying for any MSP automatically qualifies you for Extra Help (Low Income Subsidy) with Part D prescription drug costs, which saves an average of $5,300/year additional.
The 4 Medicare Savings Programs
Qualified Medicare Beneficiary (QMB)
What It Covers
Pays Part A premium, Part B premium, deductibles, coinsurance, and copayments
Potential Savings
Could save $5,000–$10,000+/year
Income Limit
Up to 100% of Federal Poverty Level ($1,255/mo single, $1,704/mo couple)
Resource Limit
$9,430 single / $14,130 couple
Specified Low-Income Medicare Beneficiary (SLMB)
What It Covers
Pays Part B premium only
Potential Savings
Saves $2,434.80/year (Part B premium)
Income Limit
100%–120% of FPL ($1,255–$1,506/mo single, $1,704–$2,045/mo couple)
Resource Limit
$9,430 single / $14,130 couple
Qualifying Individual (QI)
What It Covers
Pays Part B premium only
Potential Savings
Saves $2,434.80/year (Part B premium)
Income Limit
120%–135% of FPL ($1,506–$1,695/mo single, $2,045–$2,300/mo couple)
Resource Limit
$9,430 single / $14,130 couple
Qualified Disabled & Working Individual (QDWI)
What It Covers
Pays Part A premium only
Potential Savings
Saves up to $6,216/year (Part A premium)
Income Limit
Up to 200% of FPL ($2,510/mo single, $3,408/mo couple)
Resource Limit
$4,000 single / $6,000 couple
Total Potential Savings
If you qualify for the most comprehensive program (QMB) plus Extra Help with drug costs, your total savings could exceed $15,000 per year:
$2,434.80
Part B Premium Savings
$5,300+
Extra Help Drug Savings
$5,000+
Deductible & Cost-Sharing
Additional Financial Help Programs
Beyond MSPs, several other programs can reduce your Medicare and healthcare costs:
Extra Help (Low Income Subsidy)
Helps pay Part D prescription drug costs including premiums, deductibles, and copays. Saves an average of $5,300/year.
Eligibility: Income below $22,590 single / $30,660 couple; resources below $17,220 single / $34,360 couple
Learn more →Medicaid (Dual Eligible)
Full Medicaid coverage alongside Medicare. Covers services Medicare doesn't, including long-term care, dental, vision, and more.
Eligibility: Income and resource limits vary by state. Generally below 100% FPL, though some states have expanded eligibility.
Medicare Part D Low-Income Subsidy (LIS)
Automatically applied if you qualify for QMB, SLMB, QI, or Medicaid. Reduces or eliminates Part D premiums, deductibles, and copays.
Eligibility: Auto-enrolled when qualifying for MSP programs. Can also apply separately through Social Security.
State Pharmaceutical Assistance Programs (SPAP)
Some states offer additional help with drug costs beyond federal programs. Benefits vary widely by state.
Eligibility: Varies by state. Check with your state's insurance department or area agency on aging.
How to Apply
Contact your state Medicaid office
Each state administers MSPs through its Medicaid agency. You can find your state's office by calling 1-800-MEDICARE (1-800-633-4227).
Gather your information
You'll need: proof of income (Social Security statement, pension), bank statements, Medicare card, and proof of resources (savings, investments).
Submit your application
Most states let you apply online, by phone, by mail, or in person. Processing typically takes 45 days. Benefits are retroactive to the month you applied.
Get help if needed
Your State Health Insurance Assistance Program (SHIP) offers free, personalized help with the application. Call 1-877-839-2675 to find your local SHIP.
Why You Shouldn't Miss These Benefits
Many eligible seniors don't apply because they assume they won't qualify. Here are some important facts:
Not sure if you qualify? We can help.
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Disclaimer
We are not affiliated with Medicare, Medicaid, or any government agency. Income and resource limits shown are estimates for 2026 and may vary by state. This content is for informational purposes only. Contact your state Medicaid office for current eligibility requirements. Medicare has neither reviewed nor endorsed this information.
Got Questions?
Frequently Asked Questions
Medicare Savings Programs (MSPs) are state-administered programs that help people with limited income and resources pay for Medicare costs. Depending on the program, they can cover your Part B premium, deductibles, coinsurance, and copayments. There are four MSP programs: QMB, SLMB, QI, and QDWI.
You apply through your state's Medicaid office. You'll need to provide information about your income, resources, and Medicare coverage. Many states allow you to apply online, by phone, by mail, or in person. You can also call 1-800-MEDICARE (1-800-633-4227) for help.
Yes. Medicare Savings Programs work with both Original Medicare and Medicare Advantage. If you qualify, the state will pay your Part B premium regardless of which type of Medicare coverage you have.
Generally, no. MSP benefits are not counted as income for other programs. Qualifying for an MSP also automatically qualifies you for Extra Help with Part D drug costs, which can save an additional $5,300/year on average.
Resources include savings accounts, stocks, bonds, and other financial assets. They do NOT include your home, one car, personal belongings, burial plots, life insurance (up to $1,500 face value), or burial funds (up to $1,500 per person).
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