What Are Medicare Savings Programs?
Medicare Savings Programs (MSPs) are state-run programs that help people with limited income pay for Medicare premiums and other Medicare costs. They are funded jointly by the federal government and each state and are administered through state Medicaid offices. Depending on which level of help you qualify for, the program may pay your Medicare Part B premium, reduce your deductibles, or cover your copays and coinsurance.
There are four levels of Medicare Savings Programs, each covering different costs. Even if you do not qualify for full Medicaid, you may still qualify for one of these programs based on your income and resources.
Who It Helps
Medicare Savings Programs are available to people age 65 and older who are enrolled in Medicare and have limited income and resources. You must already be on Medicare — Part A or Part B — to apply. You do not need to have a disability or be a veteran. The programs are specifically designed for Medicare beneficiaries who struggle to cover the cost of their monthly Medicare premiums, which in 2024 run over $170 per month for Part B alone.
Typical Eligibility Rules
- You must be enrolled in Medicare Part A and/or Part B
- Your monthly income must generally be at or below about $1,800 per month for a single person (limits vary by state and program level)
- Your financial resources — such as savings and investments — must fall below the program limit (your home and car are not counted)
- You must be a U.S. citizen or a qualified immigrant
- You must be a resident of the state where you apply
Rules vary by state and may change. Check with the program directly.
What It Provides
The four levels of Medicare Savings Programs cover different costs. The Qualified Medicare Beneficiary (QMB) program — the most comprehensive level — pays your Part A and Part B premiums, deductibles, and coinsurance. The Specified Low-Income Medicare Beneficiary (SLMB) and Qualifying Individual (QI) programs pay only the Part B premium, which is worth $170 or more per month in savings. The Qualified Disabled and Working Individuals (QDWI) program covers Part A premiums for a narrower group. Across the four levels, eligible individuals can save $170 to $700 or more per year in Medicare premium costs.
How to Apply
- Gather your financial information. You will need your Medicare card, proof of income (such as a Social Security award letter or recent pay stubs), and information about your financial resources including bank account balances.
- Contact your state Medicaid office. Visit medicare.gov to find contact information for your state. You can also call Medicare directly at 1-800-MEDICARE (1-800-633-4227) for guidance.
- Complete the application. Each state has its own application form and process. Some states allow online applications; others require you to apply by mail or in person.
- Provide supporting documents. You may need to submit proof of income, resources, and Medicare enrollment. Your state office will tell you exactly what is needed.
- Follow up on your application. Processing times vary by state. If approved, savings will typically begin the month after your application is approved.
Common Questions
Can I get Medicare Savings Programs and Extra Help at the same time?
Yes. If you qualify for a Medicare Savings Program at the QMB, SLMB, or QI level, you automatically qualify for Extra Help with Part D prescription drug costs as well. You do not need to file a separate application for Extra Help — enrollment is automatic.
Will this affect my current Medicare coverage?
No. Medicare Savings Programs do not change your Medicare coverage. They only help pay the costs associated with coverage you already have. Your doctors and hospitals remain the same, and your covered services do not change.
I was denied before — should I try again?
Yes. Income and resource limits are adjusted each year, and some states have expanded their eligibility rules. If your financial situation has changed or if the limits have been updated since you last applied, it is worth reapplying. You can also ask a free SHIP counselor in your state to help you understand whether you might now qualify.
Find More Programs
Not sure what other programs you may qualify for? Use the Benefits Finder to see programs matched to your situation.