What is a Medicare Savings Program?

A Medicare Savings Program (MSP) is a set of programs designed to help individuals with limited income and resources pay for some or all of their Medicare premiums, deductibles, coinsurance, and copayments. These programs are funded by the federal government but are administered by individual states. There are four main types of Medicare Savings Programs, each with its own eligibility requirements based on income and resources:

Qualified Medicare Beneficiary (QMB) Program: This program helps pay for Medicare Part A (Hospital Insurance) and Part B (Medical Insurance) premiums, as well as deductibles, coinsurance, and copayments. If you qualify for the QMB program, you automatically qualify for Extra Help, a program that helps with prescription drug costs.

Specified Low-Income Medicare Beneficiary (SLMB) Program: The SLMB program helps pay for Medicare Part B premiums for individuals who have income and resources above the QMB limits but below the SLMB thresholds.

Qualifying Individual (QI) Program: This program also helps pay for Part B premiums. It's available to individuals with income higher than the SLMB limits but within the QI thresholds. The QI program is granted on a first-come, first-served basis, with priority given to those who were enrolled in the program the previous year.

Qualified Disabled and Working Individuals (QDWI) Program: This program helps pay the Part A premiums for certain disabled and working individuals under 65 who lost their premium-free Part A when they returned to work. Eligibility for this program is based on more specific criteria related to disability and employment.

Eligibility: Eligibility for these programs is determined based on income and resource limits that vary by state and can change yearly. Generally, these limits are set at a percentage of the Federal Poverty Level (FPL), but they can include allowances for certain types of income and assets.

To apply for an MSP, you can contact your state's Medicaid office, as these programs are administered through the state rather than directly through Medicare. I can help you apply online, which can be easier many times. Being enrolled in an MSP can also automatically qualify you for the Extra Help program to assist with Medicare prescription drug plan costs.