Medicare

Medicare Savings Programs

Medicare Savings Programs can eliminate Part B premiums and reduce other Medicare cost-sharing for qualifying low-income individuals.

Last reviewed: May 2026 · Editorial methodology

Definition

Medicare Savings Programs (MSPs) are state-administered Medicaid programs that assist low-income Medicare beneficiaries with Medicare cost-sharing. There are four main MSP categories, each with different income and asset thresholds: the Qualified Medicare Beneficiary (QMB) program, the Specified Low-Income Medicare Beneficiary (SLMB) program, the Qualifying Individual (QI) program, and the Qualified Disabled and Working Individuals (QDWI) program. Together, MSPs help pay Part A and/or Part B premiums, deductibles, coinsurance, and copays. States are required to disregard certain income and assets in eligibility determinations, including most Social Security cost-of-living adjustments. Enrollment in most MSPs also automatically qualifies beneficiaries for Extra Help (Low-Income Subsidy) for Part D prescription drug costs, which can dramatically reduce drug costs. MSPs are administered at the state level, so income and asset limits, application processes, and covered costs vary by state. Many eligible beneficiaries do not know these programs exist — healthcare providers and counselors should routinely screen Medicare patients for MSP eligibility.

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Tip

Glossary definitions are educational. Always check your own policy language — insurers can define common terms differently from one another. When in doubt, request a written explanation from your agent.

Related terms

QMB (Qualified Medicare Beneficiary)QMB status eliminates virtually all Medicare out-of-pocket costs for qualifying beneficiaries and providers cannot bill QMB-enrolled patients for cost-sharing.SLMB (Specified Low-Income Medicare Beneficiary)SLMB covers the monthly Part B premium for qualifying low-income Medicare beneficiaries whose income exceeds the QMB limit but remains below 120% of FPL.Extra Help (Low-Income Subsidy)Extra Help (also called the Low-Income Subsidy or LIS) dramatically lowers prescription drug costs for Medicare beneficiaries with limited income and resources.Dual EligibleDual-eligible beneficiaries receive Medicare for primary coverage and Medicaid for cost-sharing assistance, long-term care, and services Medicare does not cover.Medicare Part BMedicare Part B charges a monthly premium — $202.90 in 2026 for most beneficiaries — and covers the outpatient medical services that Part A does not.Medicare Part AMedicare Part A is premium-free for most beneficiaries and covers inpatient care, but comes with significant cost-sharing including a per-benefit-period deductible.

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Source: Cover Forge USA editorial team|Last verified: May 2026|Methodology
Definitions are educational and may be simplified. Always refer to your policy contract and consult a licensed agent for terms that affect coverage decisions.
CF

Cover Forge USA Editorial Team

Editorial Lead

This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.

Reviewed June 2026

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