What is a Medicare Savings Program?
A Medicare Savings Program (MSP) is a state-administered program funded by Medicaid that helps seniors and individuals with disabilities pay their Medicare premiums, copayments, and deductibles.
If you qualify for an MSP, it can save you thousands of dollars in out-of-pocket medical expenses each year.
The Four Types of Medicare Savings Programs
There are four distinct levels of MSP assistance, each with its own income and asset limits:
- Qualified Medicare Beneficiary (QMB) Program: Helps pay Part A premiums, Part B premiums, deductibles, coinsurance, and copayments.
- Specified Low-Income Medicare Beneficiary (SLMB) Program: Helps pay Part B premiums only.
- Qualifying Individual (QI) Program: Helps pay Part B premiums only (funded by limited annual grants).
- Qualified Disabled and Working Individuals (QDWI) Program: Helps pay Part A premiums for disabled working individuals.
Income and Asset Limits
Eligibility is based on your monthly income and total countable resources (assets). Resources include bank accounts, stocks, and bonds, but exclude your primary home and one vehicle.
Because limits are adjusted annually for inflation and vary by state, you should check your state’s specific Medicaid portal.