Your Medicare Part B premium is $202.90 per month in 2026. That’s $2,434.80 per year — just for the premium. Add in deductibles, copays, and coinsurance and your total Medicare costs can reach $4,000 to $6,000+ per year.
What if your state paid that premium for you?
That’s exactly what Medicare Savings Programs do. They’re state-run programs that pay some or all of your Medicare costs. And millions of people who qualify have never applied.
This guide explains every Medicare Savings Program, who qualifies, and how to apply.
What Are Medicare Savings Programs?
Medicare Savings Programs (MSPs) are programs run by your state Medicaid office that help people with limited income pay their Medicare costs.
Depending on which program you qualify for, your state can pay:
- Your Part B monthly premium ($202.90/month)
- Your Part A monthly premium (if you pay one)
- Your Part A and Part B deductibles
- Your coinsurance and copays
These programs are separate from Medicaid. You don’t need to qualify for full Medicaid to get a Medicare Savings Program. The income limits are higher. And qualifying for a Medicare Savings Program automatically qualifies you for Medicare Extra Help with prescription costs.
That means one application could save you money on your premiums AND your prescriptions.
The Four Medicare Savings Programs
There are four levels of Medicare Savings Programs. Each one has different income limits and covers different costs.
1. QMB — Qualified Medicare Beneficiary
This is the most comprehensive program. QMB pays for almost everything.
What QMB covers:
- Part B premium ($202.90/month) — paid by your state
- Part A premium (if you have one) — paid by your state
- Part A deductible ($1,736) — paid by your state
- Part B deductible ($283) — paid by your state
- All coinsurance and copays — paid by your state
Income limit (2026):
- Single: approximately $1,255 per month ($15,060/year)
- Married: approximately $1,704 per month ($20,448/year)
Resource limit (2026):
- Single: approximately $9,430
- Married: approximately $14,130
If you qualify for QMB, your out-of-pocket Medicare costs drop to nearly $0. Your state pays almost everything. Doctors and hospitals cannot bill you for deductibles, coinsurance, or copays. They must accept QMB as full payment.
QMB also automatically qualifies you for Full Extra Help with Part D prescription costs.
2. SLMB — Specified Low-Income Medicare Beneficiary
What SLMB covers:
- Part B premium ($202.90/month) — paid by your state
That’s it. SLMB only covers the Part B premium. It does not cover deductibles, coinsurance, or copays. But saving $202.90/month is $2,434.80 per year — real money.
Income limit (2026):
- Single: approximately $1,504 per month ($18,048/year)
- Married: approximately $2,040 per month ($24,480/year)
Resource limit (2026):
- Single: approximately $9,430
- Married: approximately $14,130
SLMB also automatically qualifies you for Full Extra Help with prescription costs.
3. QI — Qualifying Individual
What QI covers:
- Part B premium ($202.90/month) — paid by your state
Same as SLMB — pays your Part B premium only. The difference is the income limit is higher.
Income limit (2026):
- Single: approximately $1,692 per month ($20,304/year)
- Married: approximately $2,295 per month ($27,540/year)
Resource limit (2026):
- Single: approximately $9,430
- Married: approximately $14,130
Important about QI: This program has limited funding and operates on a first-come, first-served basis in some states. Apply as early in the year as possible.
QI also automatically qualifies you for Full Extra Help with prescription costs.
4. QDWI — Qualified Disabled and Working Individual
What QDWI covers:
- Part A premium only — paid by your state
This program is rare. It’s for people under 65 with disabilities who are working and have lost their premium-free Part A because they returned to work. Very few people are in this program.
Income limit (2026):
- Single: approximately $5,020 per month ($60,240/year)
- Married: approximately $6,808 per month ($81,696/year)
Resource limit (2026):
- Single: approximately $4,000
- Married: approximately $6,000
Which Program Are You Eligible For?
Here’s a quick reference based on your monthly income (single person):
Income under $1,255/month → QMB Your state pays premiums, deductibles, coinsurance, copays — almost everything.
Income $1,255 to $1,504/month → SLMB Your state pays your Part B premium ($202.90/month).
Income $1,504 to $1,692/month → QI Your state pays your Part B premium ($202.90/month).
Income over $1,692/month → You may not qualify for MSPs But check your state’s specific limits — some states have higher thresholds. And you may still qualify for Medicare Extra Help with prescription costs (income limit up to $22,590/year for singles).
All three main programs (QMB, SLMB, QI) automatically qualify you for Full Extra Help. That means your state pays your Part B premium AND you get nearly free prescriptions. One application, double the savings.
How Much Can You Save?
Here are the total annual savings by program:
QMB Savings
- Part B premium saved: $2,434.80/year
- Part A deductible saved: $1,736/year (per benefit period)
- Part B deductible saved: $283/year
- Coinsurance and copays saved: varies — potentially thousands
- Plus Full Extra Help on prescriptions: $1,000 to $5,000/year
- Total potential savings: $5,000 to $10,000+ per year
SLMB or QI Savings
- Part B premium saved: $2,434.80/year
- Plus Full Extra Help on prescriptions: $1,000 to $5,000/year
- Total potential savings: $3,434 to $7,434+ per year
These savings can be life-changing for someone living on $15,000 to $20,000 per year in Social Security income.
What Counts as Income?
When Medicaid checks your eligibility, they count Modified Adjusted Gross Income (MAGI):
Counted as income:
- Social Security benefits
- Pension payments
- Wages and self-employment income
- Interest and dividends
- Rental income
- Alimony received
- IRA and 401k withdrawals
Not counted as income:
- Supplemental Security Income (SSI)
- SNAP (food assistance) benefits
- Housing assistance
- Home energy assistance (LIHEAP)
- Gifts from family
- Loans
- One-time lump sum payments (in some states)
Some states use different income counting methods. Your state Medicaid office can tell you exactly what they count and don’t count.
What Counts as Resources?
Counted as resources:
- Money in checking and savings accounts
- Stocks, bonds, mutual funds
- Cash value of life insurance (above $1,500 face value)
- Real estate (other than your primary home)
- Any other liquid assets
Not counted as resources:
- Your primary home
- Your car (one vehicle)
- Personal belongings and household items
- Burial plots
- Up to $1,500 in burial funds ($3,000 for a couple)
- Life insurance with face value under $1,500
Your home and car don’t count. This is the biggest misconception. Many seniors think they can’t qualify because they own a home. Your home is excluded regardless of its value.
How to Apply
Step 1: Contact Your State Medicaid Office
Medicare Savings Programs are run by your state. Each state has its own application process.
How to find your state Medicaid office:
- Call 1-800-MEDICARE (1-800-633-4227) and ask for your state Medicaid contact
- Visit Medicare.gov and search for your state’s program
- Call SHIP at 1-877-839-2675 — they’ll connect you with the right office
Step 2: Gather Your Documents
Have this information ready:
- Social Security number and Medicare card
- Proof of income (Social Security benefit letter, pension statements, tax return)
- Bank statements (checking, savings, investment accounts)
- Proof of resources (investment account statements)
- Proof of residency (utility bill, lease, or mortgage statement)
Step 3: Submit Your Application
Depending on your state, you can apply:
- Online through your state’s Medicaid website
- By phone through your state Medicaid office
- In person at your local Medicaid or social services office
- By mail using a paper application
Step 4: Wait for a Decision
Processing time varies by state but is typically 30 to 90 days. You’ll receive a letter with the decision.
If approved, your benefits typically start the month after approval. Your Part B premium will stop being deducted from your Social Security check.
Get Free Help Applying
SHIP counselors will help you apply for Medicare Savings Programs for free. They know the process, the paperwork, and the specific rules for your state. This is the easiest way to apply.
Call SHIP at 1-877-839-2675 or find your local SHIP office at shiphelp.org.
While you’re at it, have them check your Extra Help eligibility too. One visit, two applications, maximum savings.
Medicare Savings Programs + Extra Help: The Power Combo
When you qualify for a Medicare Savings Program, you automatically qualify for Full Extra Help with prescription costs. You don’t need to apply separately — it happens automatically.
Here’s what the combination looks like:
QMB + Full Extra Help:
- Part B premium: $0 (state pays)
- Part A deductible: $0 (state pays)
- Part B deductible: $0 (state pays)
- Coinsurance and copays: $0 (state pays)
- Prescription copays: $1.55 to $4.50 per medication
- Total annual out-of-pocket: Under $200
SLMB or QI + Full Extra Help:
- Part B premium: $0 (state pays)
- Prescription copays: $1.55 to $4.50 per medication
- Still responsible for deductibles and coinsurance on medical services
- Annual premium savings alone: $2,434.80
This combination saves qualifying seniors $5,000 to $10,000+ per year. For someone living on Social Security, this is the difference between struggling and stability.
Medicare Savings Programs + Medigap
Can you have a Medicare Savings Program and a Medigap plan at the same time?
Yes, technically. But it rarely makes sense because:
- If you have QMB, your state already pays your deductibles and coinsurance — the same things Medigap covers. Paying a Medigap premium on top of QMB would be wasting money.
- If you have SLMB or QI, your state only pays your Part B premium. A Medigap plan could still be useful for covering deductibles and coinsurance. But if your income is low enough for SLMB/QI, the Medigap premium ($75-$250/month) may be hard to afford.
For most MSP-eligible seniors, the better combination is MSP + Extra Help rather than MSP + Medigap.
Medicare Savings Programs + Medicare Advantage
Can you have a Medicare Savings Program and a Medicare Advantage plan?
Yes. If you have QMB and a Medicare Advantage plan:
- Your state pays your Part B premium
- Your Medicare Advantage plan provides your coverage
- Your out-of-pocket costs within the Advantage plan are reduced
- You may qualify for Dual Special Needs Plans (D-SNPs) designed specifically for people with both Medicare and Medicaid/MSP benefits
D-SNPs often offer extra benefits like dental, vision, hearing, transportation, and over-the-counter health products — all at $0 premium. If you qualify for a Medicare Savings Program, ask about D-SNPs available in your area.
Common Reasons People Don’t Apply
“I think I make too much”
The income limits are higher than most people realize. A single person earning up to $1,692/month ($20,304/year) can qualify for QI. That covers a large percentage of seniors living on Social Security alone. Apply and find out. It costs nothing.
“The application is too complicated”
Call SHIP at 1-877-839-2675. They do the application with you. It’s free. They handle the complicated parts.
“I don’t want to be on welfare”
Medicare Savings Programs are not welfare. They’re assistance programs you’ve earned through a lifetime of working and paying into the system. You paid Medicare taxes your entire career. These programs help you afford the coverage you’ve already paid for.
“I don’t think it will save that much”
$2,434.80 per year just from the Part B premium alone. Add Extra Help prescription savings and you could save $5,000 to $10,000+ per year. For someone on a fixed income, that’s enormous.
“I already have Medicaid”
If you have full Medicaid, you likely already have QMB or equivalent protections. But check with your state to make sure you’re getting every benefit you’re entitled to.
Frequently Asked Questions
What’s the difference between Medicare Savings Programs and Medicaid? Medicaid is a full health insurance program for people with very low income. Medicare Savings Programs specifically help pay Medicare costs. You can qualify for MSPs without qualifying for full Medicaid. The income limits for MSPs are higher.
Do Medicare Savings Programs cover dental, vision, or hearing? No. MSPs help pay your Medicare premiums, deductibles, and coinsurance. Medicare itself doesn’t cover routine dental, vision, or hearing. However, if you qualify for full Medicaid in addition to an MSP, Medicaid may cover these services depending on your state.
Can I apply for a Medicare Savings Program at any time? Yes. There is no limited enrollment period. You can apply any time of year. Benefits typically begin the month after approval.
What if I get denied? You can appeal the decision. You can also reapply if your income or resources change. Income limits adjust annually, so you might qualify next year even if you don’t this year.
Do Medicare Savings Programs affect my Social Security? No. Your Social Security benefits stay the same. If you have QMB, SLMB, or QI, the Part B premium deduction is simply removed from your Social Security check — giving you more take-home money each month.
Can I have a Medicare Savings Program and a Medicare Supplement plan? Yes, but it may not make financial sense if QMB already covers your cost-sharing. Talk to a SHIP counselor about whether Medigap is worth the additional premium in your situation.
Will I lose my Medicare Savings Program if my income increases? If your income rises above the limit, you may lose eligibility. But you’ll receive notice before your benefits end, giving you time to plan. If your income drops again, you can reapply immediately.
How do I sign up for Medicare and a Savings Program at the same time? Sign up for Medicare through Social Security (ssa.gov/medicare). Then apply for a Medicare Savings Program through your state Medicaid office. They’re separate applications but can be done at the same time.
What to Do Right Now
- Check your eligibility. If your monthly income is under $1,692 (single) or $2,295 (married), you may qualify. Apply even if you think you’re close to the limit.
- Call SHIP at 1-877-839-2675. They’ll help you apply for free. They can also check your eligibility for Medicare Extra Help at the same time.
- Gather your documents. Social Security benefit letter, bank statements, and proof of income. Having these ready makes the application process smooth.
- If you help a parent or grandparent, check their eligibility. Many seniors don’t know these programs exist. You could save them thousands per year.
- Don’t wait. QI funding is first-come, first-served in some states. Apply as soon as possible to secure your spot.
- Review your total Medicare costs to understand how much you’re currently spending and how much a Savings Program could save you.
Medicare Savings Programs exist to help people who’ve worked their entire lives afford the healthcare they’ve earned. Millions qualify. Most haven’t applied. Don’t leave thousands of dollars on the table. Check your eligibility today.