Perspective               

Medicare Savings Programs for People with Low Income

The Medicare Savings Programs, sometimes called MSPs, are designed to help low-income older and disabled individuals with Medicare, who are not eligible for Medicaid, save money on their health care. There are three programs, each of which works slightly differently. QI-1, or the Qualified Individual 1 program helps over 150,000 individuals with incomes between 120 and 135 percent of the federal poverty level pay their monthly Medicare Part B premiums. Combined, the three Medicare Savings Programs could help around five million people, but half of eligible people are not enrolled. Enrolling would save these people $700 a year in Part B premiums and often more in deductibles and coinsurance payments. Many factors contribute to under-enrollment, but misinformation about the enrollment process itself is one key factor.

To qualify for enrollment in a Medicare Savings Program, an individual must have Medicare Part A, which is hospital insurance, a low monthly income, and assets—excluding a house and car— worth less than $4,000. A qualifying couple must have Medicare Part A, a low monthly income, and assets not in excess of $6,000. All three programs cover the Medicare Part B premium cost. QMB also covers the Part A premium cost as well as the cost of deductibles and coinsurance. These three Medicare programs are available to people who are not poor enough to qualify for Medicaid. Medicaid is another low-income program that many seniors and people with disabilities rely upon for assistance in accessing the health care they need. Approximately 6.4 million people in the United States have both Medicare and Medicaid.

For more information about the Medicare Savings Programs, call 1-800-MEDICARE, that’s 1-800-633-4227. You can also go to Help Paying for Medicare.

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