The Medicare Savings Program (MSP) is a state-run program that helps people with limited income pay for Medicare costs, including premiums, deductibles, and copays. As of 2026, there are four distinct MSP categories, each covering different costs depending on your income level. If you have Medicare and a low to moderate income, you may qualify for significant financial help, potentially worth thousands of dollars per year.
There are roughly 9 million Americans enrolled in Medicare Savings Programs, but millions more likely qualify without knowing it. If you are unsure whether you qualify, check your eligibility now at CoveredUSA — it takes 2 minutes.
The 4 Types of Medicare Savings Programs
Each program covers a different set of Medicare costs, and each has its own income limit. You apply for all four through the same process. Your state Medicaid office determines which one you qualify for.
1. Qualified Medicare Beneficiary (QMB)
QMB is the most comprehensive option. It covers:
- Medicare Part A premium (if you owe one)
- Medicare Part B premium ($185.00 per month in 2026)
- Part A and Part B deductibles
- Medicare copayments and coinsurance
Under QMB, providers are prohibited from billing you for Medicare cost-sharing. You should pay nothing out of pocket for Medicare-covered services.
Income limit (2026): Up to 100% of the Federal Poverty Level (FPL)
2. Specified Low-Income Medicare Beneficiary (SLMB)
SLMB covers only the Medicare Part B premium. It does not cover deductibles or copays.
Income limit (2026): 100% to 120% of FPL
3. Qualifying Individual (QI)
QI also covers the Medicare Part B premium. Funding is limited and applications are processed on a first-come, first-served basis each year. You must re-apply annually.
Income limit (2026): 120% to 135% of FPL
4. Qualified Disabled Working Individual (QDWI)
QDWI covers the Medicare Part A premium only. It applies to people under 65 who have a disability, returned to work, and lost premium-free Part A as a result.
Income limit (2026): Up to 200% of FPL
2026 Income Limits by Program
The table below shows the monthly income limits for the 48 contiguous states and Washington, D.C. Alaska and Hawaii have higher limits. Some states have expanded income thresholds beyond the federal minimums.
| Program | Individual Monthly Income | Couple Monthly Income | FPL Percentage |
|---|
| QMB | Up to $1,350 | Up to $1,824 | Up to 100% FPL |
| SLMB | $1,351 to $1,616 | $1,825 to $2,184 | 100% to 120% FPL |
| QI | $1,617 to $1,816 | $2,185 to $2,455 | 120% to 135% FPL |
| QDWI | Up to $2,700 | Up to $3,648 | Up to 200% FPL |
These are gross income figures. Some income types, such as the first $20 of monthly income and the first $65 of earned income, are excluded when calculating eligibility.
2026 Asset Limits
Most states also require that your countable resources (savings, investments, property other than your home) fall below a limit. In 2026, the asset limits for QMB, SLMB, and QI are:
| Individual | Couple |
|---|
| Asset limit | $9,950 | $14,910 |
Note that several states, including New York, California, Connecticut, Alabama, Arizona, Delaware, Louisiana, Maine, Mississippi, New Mexico, Oregon, Vermont, and the District of Columbia, have eliminated asset tests for Medicare Savings Programs. In those states, only income is evaluated.
Your primary home, one car, and personal belongings are generally not counted as assets.
What MSP Enrollment Gets You Automatically
Beyond the direct cost coverage, enrolling in any Medicare Savings Program comes with one major bonus: automatic enrollment in Medicare Extra Help (also called the Low-Income Subsidy, or LIS).
Extra Help covers most of your Medicare Part D prescription drug costs. According to the Social Security Administration, Extra Help is worth roughly $5,700 per year in prescription savings. There are no separate income or asset forms to complete. Once your MSP is approved, Extra Help enrollment happens automatically.
For more detail on overall Medicare eligibility, visit the CoveredUSA Medicare eligibility guide.
How to Apply for a Medicare Savings Program
Step 1: Check your income and assets
Use the income limits table above. Remember that most states exclude $20 from any income source when calculating eligibility, so someone with $1,370 in monthly income may still qualify for QMB at the federal level.
Step 2: Gather your documents
You will generally need:
- Proof of identity (Social Security card or driver's license)
- Proof of Medicare enrollment (your red, white, and blue Medicare card or a letter from Medicare)
- Proof of income (recent pay stubs, Social Security benefit letter, pension statement)
- Proof of resources if your state uses an asset test (bank statements, investment account statements)
- Proof of residency (utility bill, lease, or similar document)
Step 3: Contact your state Medicaid office
Medicare Savings Programs are administered by each state through the Medicaid program. You can:
- Visit your local Medicaid or Department of Social Services office
- Call your state Medicaid office directly
- Apply online if your state has an online Medicaid application portal
- Call 1-800-MEDICARE (1-800-633-4227) and ask for a referral to your state Medicaid office
You can also get free help from your State Health Insurance Assistance Program (SHIP), which provides unbiased guidance at no cost. Find your local SHIP at medicare.gov/ship.
Step 4: Submit your application
Complete the application form. Your state Medicaid office will determine which program you qualify for. If you qualify for more than one, you will be enrolled in the most beneficial program (typically QMB if income is under 100% FPL).
Step 5: Provide any additional documentation requested
States may ask for clarification on income sources or assets. Respond promptly to avoid delays.
Step 6: Receive your determination
Most states process applications within 45 days. Once approved, coverage generally begins the first of the month following your application. QI applications are sometimes limited by funding, so applying early in the year is recommended.
How Much Can You Save?
The savings depend on which program you qualify for, but even the most limited program (QI or SLMB) eliminates the $185.00 monthly Part B premium. That is $2,220 per year just from premium savings.
For QMB enrollees, the total value of cost-sharing protection plus premium coverage plus Extra Help can easily exceed $7,000 to $10,000 annually depending on health service use.
| Program | What You Save |
|---|
| QMB | Part B premium ($2,220/yr) + deductibles + copays + Extra Help (~$5,700/yr) |
| SLMB | Part B premium ($2,220/yr) + Extra Help (~$5,700/yr) |
| QI | Part B premium ($2,220/yr) + Extra Help (~$5,700/yr) |
| QDWI | Part A premium (up to $518/mo in 2026 = up to $6,216/yr) |
States with Higher Limits
A handful of states set income thresholds above the federal minimums. If you live in Alaska, Connecticut, Hawaii, Maine, or the District of Columbia, check your state Medicaid agency directly for current limits, as they are higher than the national figures shown above.
Frequently Asked Questions
What is the Medicare Savings Program?
The Medicare Savings Program is a Medicaid-funded program that helps people with limited income and resources pay for Medicare costs. It covers some or all of Medicare Part A and Part B premiums, deductibles, and cost-sharing, depending on which of the four program types you qualify for.
Who qualifies for the Medicare Savings Program in 2026?
To qualify, you generally need to be enrolled in Medicare Part A, have income at or below 135% of the Federal Poverty Level (higher for QDWI), and in most states meet a resource limit. In 2026, the income cutoff for QI, the broadest program, is $1,816 per month for an individual and $2,455 per month for a couple.
How is income calculated for the Medicare Savings Program?
States exclude the first $20 of any monthly income and the first $65 of earned (work) income before comparing to the limit. Social Security income, pension income, wages, and investment income are generally all counted, but the exclusions mean your total income can be slightly above the listed limit and you can still qualify.
Does the Medicare Savings Program cover prescription drugs?
MSP itself does not pay for prescription drugs directly. However, all MSP enrollees are automatically enrolled in Medicare Extra Help (the Part D Low-Income Subsidy), which covers the majority of prescription drug costs under Part D. The Social Security Administration estimates Extra Help is worth about $5,700 per year.
Is there an asset test for the Medicare Savings Program?
Most states apply a resource or asset test. In 2026, the limit is $9,950 for an individual and $14,910 for a couple in most states. However, more than a dozen states, including New York, California, and Oregon, have removed the asset test entirely and only look at income.
Do I have to reapply for the Medicare Savings Program every year?
For QMB and SLMB, most states renew your coverage annually with minimal paperwork and may auto-renew if your income and assets remain unchanged. For QI, you must reapply each year since funding is limited and allocated on a first-come, first-served basis.
Can I get the Medicare Savings Program if I have other insurance?
Having other insurance, such as an employer retiree plan, does not automatically disqualify you. However, states will consider how other coverage interacts with Medicare and MSP benefits. Contact your state Medicaid office for a determination specific to your situation.
How do I find out which Medicare Savings Program I qualify for?
The easiest way is to apply through your state Medicaid office. The state will automatically determine which of the four programs best fits your situation. You can also run a quick check at CoveredUSA to see your likely eligibility before you apply.
Check your eligibility now at CoveredUSA — it takes 2 minutes.
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