Medicare Savings Programs: How Retirees Can Reduce Healthcare Costs

• Author: Leo Olson
• Posted: 2025-02-05

Healthcare expenses can be overwhelming, especially for retirees on a fixed income.

If you qualify, these programs can pay for Medicare Part A and Part B premiums, deductibles, coinsurance, and copayments—saving you hundreds, even thousands, of dollars each year.
 

What Are the Medicare Savings Programs?

There are four main types of Medicare Savings Programs, each offering different levels of financial assistance:

1. Qualified Medicare Beneficiary (QMB) Program – Covers Medicare Part A & B premiums, deductibles, and copays. Medicare providers cannot bill QMB enrollees for covered services.
2. Specified Low-Income Medicare Beneficiary (SLMB) Program – Helps pay for Medicare Part B premiums.
3. Qualifying Individual (QI) Program – Also assists with Medicare Part B premiums but has limited enrollment, granted on a first-come, first-served basis.
4. Qualified Disabled & Working Individual (QDWI) Program – Helps individuals under 65 who lost premium-free Part A due to returning to work by paying for their Medicare Part A premiums.

If you qualify for any of these programs, you will also automatically be enrolled in Extra Help, a program that lowers Medicare Part D prescription drug costs.

Who Qualifies for Medicare Savings Programs?

To be eligible, you must:

1. Be enrolled in Medicare Part A
2. Meet your state’s income and asset limits

Each state has its own rules for eligibility, and some do not count assets at all when determining if you qualify.

Even if your income seems too high, you should still apply, as states have different guidelines.
 

2025 Medicare Savings Program Income & Asset Limits

These are the general income and asset limits for 2025, though they may vary by state:

• Qualified Medicare Beneficiary (QMB) Program

  • Individual income: $1,325/month
  • Couple income: $1,783/month
  • Individual assets: $9,660
  • Couple assets: $14,470

• Specified Low-Income Medicare Beneficiary (SLMB) Program

  • Individual income: $1,585/month
  • Couple income: $2,135/month
  • Asset limits: Same as QMB

• Qualifying Individual (QI) Program

  • Individual income: $1,781/month
  • Couple income: $2,400/month
  • Asset limits: Same as QMB

• Qualified Disabled & Working Individual (QDWI) Program

  • Individual income: $5,302/month
  • Couple income: $7,135/month
  • Asset limits: Lower than other programs

Note: Alaska and Hawaii have slightly higher income limits. Check with your state Medicaid office for the most accurate eligibility details.
 

How to Apply for a Medicare Savings Program?

Medicare Savings Programs are managed at the state level, so you will need to apply through your state’s Medicaid office.

Steps to Apply:

1. Contact your state Medicaid office (visit Medicare.gov or call 1-800-MEDICARE)
2. Fill out an application (available online, by mail, or in person)
3. Submit required documents (proof of income, assets, and Medicare enrollment)

Even if you’re unsure about eligibility, apply anyway—state-specific rules may work in your favor.

For retirees struggling with rising healthcare expenses, Medicare Savings Programs provide critical financial relief.

Check if you qualify today—it could save you thousands each year.

Previous article: Social Security: February 2025 Payment Dates for Retirees

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