Q: Is there help for me if I can’t afford Medicare’s premiums?
A: Yes. Medicare Savings Programs (MSP) can pay Medicare Part A and Medicare Part B premiums, deductibles, copays, and coinsurance for enrollees with limited income and limited assets. There are also MSPs that help just help to pay Medicare Part B premiums (for most seniors, Medicare Part A is premium-free), and one MSP that helps disabled working individuals pay their Part A premiums.
There are four types of Medicare Savings Programs, each with their own income limits (income limits detailed below are for the continental US; income limits are higher in Alaska and Hawaii) and asset limits (the asset limits for most of the MSPs are $7,560 for an individual, and $11,340 for a couple):
- Qualified Medicare Beneficiary Program (QMB). Helps to pay premiums for Part A and Part B, as well as copays, deductibles, and coinsurance. This is the most robust MSP, and has the lowest income limits for eligibility. A single person can qualify in 2018 with an income up to $1,032 per month ($1,392/month for a couple). If you qualify as a QMB, you’re automatically eligible for Extra Help paying for Part D prescription coverage.
- Specified Low Income Medicare Beneficiary Program (SLMB). Helps to pay premiums for Part B. A single person can qualify in 2018 with an income up to $1,234 per month ($1,666/month for a couple). If you qualify as a SLMB, you’re automatically eligible for Extra Help paying for Part D prescription coverage.
- Qualified Individual Program (QI). Helps to pay premiums for Part B. A single person can qualify in 2018 with an income up to $1,386 per month ($1,872/month for a couple). If you qualify as a QI, you’re automatically eligible for Extra Help paying for Part D prescription coverage.
- Qualified Disabled and Working Individuals Program (QDWI). Helps to pay Part A premiums. This MSP is for people who are disabled but have returned to work, and lost their premium-free Medicare Part A when they returned to work. The income limits are higher ($4,132/month for an individual, and $5,572 for a couple), but the asset limit is lower, at $4,000 for an individual and $6,000 for a couple.
Here’s more information about MSPs, and the income/asset limits that apply to each type of MSP in 2018, including numbers for Alaska and Hawaii. Note that assets include money in the bank, and investments in stocks and bonds. But your primary residence and one car are not counted as assets, nor are your household and personal items.
Eligibility for MSPs is determined by your state Medicaid office, as the funding for MSPs comes from the Medicaid program.
Medicare-Medicaid dual eligibility
People who are eligible for MSPs are covered by Medicare alone, but receive assistance with premiums (and in some cases, cost-sharing as well) from the Medicaid program. But some low-income Medicare enrollees are also fully eligible for Medicaid, in addition to Medicare.
About 20 percent of Medicare beneficiaries are “dual eligible” for both Medicare and Medicaid. This is especially true of older seniors who need nursing home care and have exhausted their own funding to cover the cost. Medicare does not cover long-term care, but Medicaid does, if the person has a low income and few assets. Almost two-thirds of the people living in American nursing homes are covered by Medicaid (almost all of them are also covered by Medicare).
Extra Help with prescription drug coverage
Medicare offers “Extra Help” for Medicare enrollees who can’t afford their Part D prescription drug coverage. In 2018, if you’re a single person earning less than $1,538 per month, with financial resources that don’t exceed $14,100, you may be eligible for “Extra Help.” The program will reduce or eliminate your Part D plan’s premium and deductible, and also lower the cost of prescription drugs to a very small amount.
Many states offer State Pharmacy Assistance Programs (SPAPs), which help low-income individuals pay for prescription drugs based on their financial situations, on their age and on their medical condition. You can use this Medicare tool to search for SPAPs in your area.
Assistance with prescription drug coverage is also available for elderly and disabled people through PACE (Programs of All-Inclusive Care for the Elderly). This Medicare / Medicaid program provides resources that are equivalent to nursing home services but which allow the enrollee to remain at home. PACE covers doctors visits, home care, hospital visits, transportation and home care as well. The fact sheet, “Quick Facts About Programs of All-inclusive Care for the Elderly” will answer your questions about the program.
Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.