How to lower your Medicare costs with Medicare Savings Programs and Extra Help
Medicare is a big help, but it isn't free. Premiums and copays can take a big bite out of a fixed income. However, if your income and savings are limited, two programs can cut those costs dramatically, and millions of people who qualify never sign up.
Key takeaways
- Medicare Savings Programs can pay your Part B premium and sometimes your other Medicare costs.
- Extra Help lowers your Part D prescription drug costs.
- If you qualify for a Medicare Savings Program, you automatically qualify for Extra Help.
- Some states have higher limits than the federal ones, so apply even if you think you earn too much.
The Part B premium alone is $202.90 a month. Having it paid for you is like getting a raise of over $2,400 a year.
Medicare Savings Programs
There are three main Medicare Savings Programs (called MSPs). Each has its own income limit. These are the federal monthly limits for 2026, and most states use them, but some set higher limits.
| Program | Individual monthly income | Couple monthly income | What it pays |
|---|---|---|---|
| QMB | Up to $1,350 | Up to $1,824 | Part A and B premiums, deductibles, and coinsurance |
| SLMB | Up to $1,616 | Up to $2,184 | Part B premium |
| QI | Up to $1,816 | Up to $2,455 | Part B premium |
In most states, your savings and other resources have to be under $9,950 for an individual or $14,910 for a couple. Your home, one car, and money for burial usually don't count. Several states have dropped the resource test entirely.
- Qualified Medicare Beneficiary (QMB): Pays your Medicare premiums and the deductibles and coinsurance for covered care. Doctors and hospitals that take Medicare aren't allowed to bill you for those costs.
- Specified Low-Income Medicare Beneficiary (SLMB): Pays your Part B premium.
- Qualifying Individual (QI). Also pays your Part B premium. QI is first-come, first-served, and you have to reapply every year.
Say your only income is $1,300 a month from Social Security, before the Part B premium, and you have $5,000 in savings. You'd likely qualify for QMB in most states. Your state would pay your $202.90 premium, raising your monthly deposit by that much, and you generally wouldn't owe Medicare deductibles or the usual 20% coinsurance.
Extra Help with prescription drugs
Extra Help lowers what you pay for Part D drug coverage. If you qualify, you may pay:
- Little or no monthly premium for many drug plans
- No deductible
- Low, set copays for each prescription
Extra Help is usually for people with incomes under about 150% of the federal poverty level and limited savings. You may also be able to change drug plans more often than other people.
You qualify automatically if you already have Medicaid, are on SSI, or are in a Medicare Savings Program. Otherwise, you can apply through Social Security online at ssa.gov or at a local office.
How do you apply for a Medicare Savings Program?
Apply through your state Medicaid office (most states let you apply online). You'll usually need:
- Your Medicare card
- Proof of income
- Bank statements
- Proof of where you live
Don't count yourself out
A lot of people assume they won't qualify, but the federal limits don’t count all of your income, and plenty of states are more generous. Some count only part of your income or skip the savings limit entirely. The only way to know for sure is to apply.
Your State Health Insurance Assistance Program (SHIP) can help you apply for free. You can find yours at shiphelp.org.
What happens when you qualify?
Your state starts paying your Part B premium, and it stops coming out of your Social Security check, so your monthly deposit goes up. Note that it can take a few months for the change to show up, and you may get a refund for months you overpaid.
What this is
Why it matters
What it means for you
What to do next
Sources
Related FAQs
Common questions about this topic, answered simply.
Will getting a Medicare Savings Program affect my other benefits?
No, it doesn't reduce your Social Security, and it may help you qualify for other programs.
Can I qualify if I own my home?
Yes, your home usually doesn't count toward the savings limit.
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