Medicare Savings Programs 2026: Income Limits and How to Apply
Medicare GuideMedicare Savings Programs (MSPs) are state-run programs that help pay your Medicare costs if your income is limited — most importantly your Part B premium ($185/month in 2025, over $2,400 a year). There are three levels (QMB, SLMB, QI) based on income, and the top level also covers deductibles and copays. Income limits vary by state and are often more generous than the federal minimums, so it's worth applying even if you think you earn too much. Applying is free through your state Medicaid office.
Key Facts
- Minimum yearly savings
- Over $2,400 (the Part B premium)
- QMB
- Pays Part A & B premiums, deductibles, and copays (lowest income)
- SLMB
- Pays the Part B premium (slightly higher income)
- QI
- Pays the Part B premium (first-come, first-served)
- Bonus
- Qualifying for an MSP also gives you Extra Help with drug costs automatically
What Medicare Savings Programs do
Medicare Savings Programs are among the most valuable — and most underused — benefits available to people on Medicare. According to the National Council on Aging, roughly half of the people who qualify never enroll, leaving thousands of dollars on the table each year.
The core benefit is that an MSP pays your monthly Part B premium, which is $185 in 2025 — more than $2,400 a year back in your pocket. Depending on which program you qualify for, it may also cover your Part A premium (if you have one), your deductibles, and your copays.
These programs are run by each state's Medicaid office, but you don't have to have full Medicaid to get one — MSPs are specifically for people on Medicare with limited income.
The three programs and who they're for
There are three MSP levels, and which one you qualify for depends on your income. The lower your income, the more the program covers.
The QMB program (Qualified Medicare Beneficiary) is the most comprehensive: it pays your Part A and B premiums, deductibles, and copays. With QMB, providers who accept Medicare can't bill you for covered services — a valuable protection against surprise bills. The SLMB program (Specified Low-Income Medicare Beneficiary) pays just the Part B premium and allows a slightly higher income. The QI program (Qualifying Individual) also pays the Part B premium but has limited funding awarded first-come, first-served, so apply early in the year.
| Program | What it pays | Who it's for |
|---|---|---|
| QMB | Part A & B premiums + deductibles + copays | Lowest income |
| SLMB | Part B premium | Slightly higher income |
| QI | Part B premium (first-come, first-served) | A bit higher still |
Sources: Medicare.gov (Medicare Savings Programs); CMS. Exact income limits vary by state.
The income limits — and why to apply anyway
Here's the most important thing to know about the income limits: they vary by state, and many states set them higher than the federal minimums. Some states don't even count your savings or assets. So even if you believe you earn too much, you may still qualify.
On top of that, when your income is calculated, certain amounts aren't counted, which can put you under the limit even when it looks like you're over on paper. The only way to know for sure is to apply — and it's free.
Federal figures are updated each year, and your state may be more generous, so don't rule yourself out based on a number you saw somewhere. Check your specific state's limits or have someone check for you.
How to apply — and the two-for-one bonus
To apply for a Medicare Savings Program, contact your state's Medicaid office. The application is free. You can also get free, confidential help from your State Health Insurance Assistance Program (SHIP).
Have these ready to speed things up: your Medicare card, proof of income (like your Social Security benefit letter), bank statements, and proof of where you live.
And here's the bonus that makes applying even more worthwhile: when you're approved for any Medicare Savings Program, you automatically qualify for Extra Help, the federal program that slashes your Part D prescription drug costs. One application can unlock two major sources of savings at once.
Might you be paying too much?
A licensed agent can check whether you likely qualify for an MSP and Extra Help — free, no obligation.
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How much can a Medicare Savings Program save me?
At minimum, an MSP pays your Part B premium — $185/month in 2025, over $2,400 a year. The QMB level also covers your deductibles and copays, which can add thousands more in savings. Qualifying also unlocks Extra Help with prescription costs.
What are the income limits for Medicare Savings Programs?
They vary by state and are often more generous than the federal minimums — some states don't count assets at all, and certain income is excluded when they calculate. Because of that, it's worth applying even if you think you earn too much. Check your state's specific limits.
Where do I apply for a Medicare Savings Program?
Through your state's Medicaid office — the application is free. You can also get free help from your State Health Insurance Assistance Program (SHIP) or a licensed agent. Have your Medicare card, proof of income, and bank statements ready.
Does an MSP give me other benefits?
Yes. When you're approved for any Medicare Savings Program, you automatically qualify for Extra Help, which greatly reduces your Part D prescription drug costs. One application unlocks both programs.