Medicare Savings Programs: How Low-Income Seniors Can Get Help Paying Medicare Costs

An estimated 2 million people who qualify for Medicare Savings Programs (MSPs) are not enrolled, leaving significant money unclaimed. These state-administered programs — funded jointly by states and the federal government — help pay Medicare premiums, deductibles, and copays for people with limited income and resources. Eligibility is broader than most people expect; you do not need to be on Medicaid to qualify. If your monthly income is close to the federal poverty level, you should check your eligibility every year, as thresholds adjust annually.

The Four Medicare Savings Programs

• Qualified Medicare Beneficiary (QMB)

  Income limit: ~$1,235/month individual, $1,663/month couple (2024). Pays Part A and Part B premiums, deductibles, coinsurance, and copays. Providers are prohibited from billing QMB enrollees for cost-sharing — a right many seniors don't know they have.

• Specified Low-Income Medicare Beneficiary (SLMB)

  Income limit: ~$1,478/month individual, $1,992/month couple (2024). Pays the Part B premium only (~$174.70/month). Enrollment also automatically qualifies you for Extra Help with Part D drug costs.

• Qualifying Individual (QI)

  Income limit: ~$1,660/month individual, $2,239/month couple (2024). Pays the Part B premium. Unlike QMB and SLMB, QI has limited funding — applications are processed on a first-come, first-served basis each year starting January 1.

• Extra Help (Low Income Subsidy for Part D)

  Pays most or all of Part D premiums, deductibles, and copays. Full Extra Help (income ≤135% FPL) reduces copays to $4.50 for generics and $11.20 for brand-name drugs in 2024. Partial Extra Help available up to 150% FPL.

Apply for Medicare Savings Programs through your state Medicaid office — not through Medicare directly. You can find your state office at benefits.gov or by calling 1-800-MEDICARE. The Social Security Administration handles Extra Help applications at ssa.gov or by calling 1-800-772-1213. Required documents typically include proof of income (Social Security award letter, pay stubs), bank statements, and proof of Medicare enrollment. The application process takes 30–45 days. If approved, retroactive benefits may apply to the start of the month you applied.

Resource limits for Medicare Savings Programs are more generous than Medicaid and exclude your home, one car, household items, and burial funds. In 2024, the countable resource limit is $9,090 for individuals and $13,630 for couples. States have the option to use higher resource limits, and some states have eliminated resource tests entirely. Even if you were previously denied, reapply — rules change annually and state-specific expansions may now cover you. A State Health Insurance Assistance Program (SHIP) counselor can provide free, unbiased help with your application.