Every year, hundreds of thousands of Medicare beneficiaries pay Part B premiums they do not have to pay — because they qualify for a Medicare Savings Program (MSP) and no one told them about it. If your income is limited, this is worth checking.
Medicare Savings Programs are Medicaid-funded programs that help lower-income Medicare beneficiaries pay for Medicare costs. There are four programs, each with different income and asset thresholds. Depending on which program you qualify for, the benefits can include having your Part B premium paid on your behalf, reduced or eliminated Part A and Part B deductibles, and reduced copays.
| Program | What it pays | Approx. 2026 income limit (individual) |
|---|---|---|
| Qualified Medicare Beneficiary (QMB) | Part A premium (if applicable), Part B premium, all deductibles, copays, and coinsurance | ~$1,275/month |
| Specified Low-Income Medicare Beneficiary (SLMB) | Part B premium only | ~$1,527/month |
| Qualifying Individual (QI) | Part B premium only (funding limited — first come, first served) | ~$1,718/month |
| Qualified Disabled and Working Individuals (QDWI) | Part A premium for certain disabled workers | ~$4,615/month |
These thresholds change annually and vary slightly by state. Income limits are also higher for married couples. Verify current limits at Medicare.gov or through your state Medicaid office.
Most Medicare Savings Programs have asset limits in addition to income limits. However, the assets that count are more limited than people expect. Your primary home, one car, household goods, and certain burial funds are typically excluded. What counts: checking and savings account balances, stocks, bonds, and other liquid financial assets. The limits vary by state and program.
Separately from MSPs, there is a program called Extra Help (also known as the Low Income Subsidy or LIS) that reduces Part D prescription drug costs for lower-income beneficiaries. If you qualify for a Medicare Savings Program, you automatically qualify for Extra Help. Extra Help can reduce your Part D premiums, deductibles, and copays significantly — or eliminate them entirely depending on your income level.
Apply for Extra Help through Social Security at SSA.gov or by calling 1-800-772-1213.
Apply for Medicare Savings Programs through your state Medicaid office — not through Medicare itself. The application process and asset verification requirements vary by state. Many states allow online applications. Your State Health Insurance Assistance Program (SHIP) counselor can help you apply at no cost — find yours at shiphelp.org.
If you are not sure whether you qualify, apply anyway. The income and asset thresholds are higher than many people assume, and the benefit — having your Part B premium paid for you — is worth $2,434.80 per year at 2026 rates. The application is free and a SHIP counselor can help you complete it.
If you are enrolled in the QMB (Qualified Medicare Beneficiary) program, providers are legally prohibited from billing you for Medicare copays, coinsurance, or deductibles. This is a federal rule, not just a courtesy. If a provider bills you for Medicare cost-sharing when you have QMB, you can report it to Medicare. QMB status appears on your Medicare card as "QMB" or in your plan's records.
Reminder: Ready at 65 is not affiliated with Medicare, CMS, the SSA, or any government agency. This article is general educational information, not financial, legal, medical, or insurance advice. Rules, costs, and deadlines change — verify current details at Medicare.gov or by calling 1-800-MEDICARE before making any decision. Full disclaimer →