Medicare covers most of your health care expenses after you turn 65, but it isn’t free. You’ll still have out-of-pocket costs for Medicare Part A, Part B and Part D prescription drug coverage.
Fortunately, several programs provide financial assistance to people with limited resources or who have certain medical conditions. They can help pay Medicare premiums, deductibles, copayments and prescription drug costs.
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State-run Medicare Savings Programs can help people with low incomes pay Part A and Part B premiums and out-of-pocket costs as well as help with their drug costs.
To be eligible, your income — and sometimes your savings — must be below certain limits, which vary by state. These limits are often higher than those required to qualify for Medicaid, the jointly run federal-state program for low-income Americans. Some states won’t count savings into the eligibility equation.
Medicare Savings Programs come in four types, each with different details and eligibility requirements; income limits are slightly higher in Alaska and Hawaii.
The Qualified Medicare Beneficiary Program helps pay for Part A and Part B premiums, deductibles, coinsurance and copayments and automatically qualifies you the Part D Extra Help program. You’ll pay no more than $11.20 in 2024 for each drug your plan covers.
2024 monthly income and asset limits:
The Specified Low-Income Medicare Beneficiary Program pays Part B premiums and provides Extra Help with Part D costs. You’ll pay no more than $11.20 in 2024 for each drug your plan covers.
2024 monthly income and asset limits:
The Qualifying Individual Program pays Part B premiums and provides Extra Help with Part D costs. You’ll pay no more than $11.20 in 2024 for each drug your plan covers. States approve applications on a first-come, first-served basis.
2024 monthly income and asset limits:
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The Qualified Disabled & Working Individual Program is for people with disabilities who have returned to work, lose Social Security disability benefits and don’t qualify for premium-free Part A of because they’re working again. It also helps pay for Part A premiums.
2024 monthly income and asset limits:
Learn more about Medicare Savings Program income and asset calculations and financial eligibility guidelines. Other good sources for information and eligibility requirements are your state Medicaid program and your State Health Insurance Assistance Program (SHIP). Application requirements vary by state.
If you apply for Extra Help for assistance with prescription drug costs, your application is automatically forwarded to your state to determine eligibility for a Medicare Savings Program.
Puerto Rico and the U.S. Virgin Islands don’t have Medicare Savings Programs, but their Medicaid programs may be able to assist you financially. See Medicaid.pr.gov in Puerto Rico and Medical Assistance Program in the U.S. Virgin Islands.
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You can get it automatically if you have full Medicaid coverage, if you qualify for certain Medicare Savings Programs or if you’re receiving Supplemental Security Income benefits from Social Security.
If you don’t get Extra Help automatically, you can apply for it. To qualify in 2024, your assets must be worth $17,220 or less for individuals or $34,360 or less for married couples living together. This includes an allowance of up to $1,500 per person for burial expenses.
Your income in 2024 must be less than $22,590 for an individual or $30,660 for married couples living together. The income limits, which change annually, are based on the federal poverty level and are higher for Alaska and Hawaii.
If you qualify for Extra Help, you’ll also need to enroll in a Part D prescription plan. If you don’t, Medicare will enroll you in one automatically. Check the Medicare Plan Finder to find one that covers your medications.
