Medicare is not free. Between the Part B premium, deductibles, coinsurance and drug costs, out-of-pocket spending can strain a fixed income. Two programs are designed to help people with limited income and resources, and both are underused because many eligible seniors have never heard of them.
Medicare Savings Programs
Medicare Savings Programs (MSPs) are run by state Medicaid agencies with federal funding. Depending on your income level, an MSP can pay your Part B premium, which alone is worth well over a thousand dollars a year, and in some cases also pay your Part A and B deductibles and coinsurance. There are several tiers with different income limits; the names vary but the most common are the Qualified Medicare Beneficiary (QMB), Specified Low-Income Medicare Beneficiary (SLMB) and Qualifying Individual (QI) programs.
Income and resource limits change each year and some states use more generous rules than the federal minimum. Even if you were told you earned too much in the past, it is worth checking again.
Extra Help for prescription drugs
Extra Help, also called the Part D Low-Income Subsidy, lowers what you pay for Part D premiums, deductibles and copayments. It is administered by the Social Security Administration. If you qualify for an MSP, SSI or full Medicaid you are automatically enrolled in Extra Help; otherwise you apply directly through ssa.gov or by phone.
How to apply
Apply for an MSP through your state Medicaid office; many states let you apply online. You will need proof of income, such as your Social Security award letter, and information about bank accounts and other resources. Your State Health Insurance Assistance Program (SHIP) can help you fill in the forms at no charge. Approval for an MSP also stops the late-enrollment penalty for Part B if you had one.
Other programs worth checking
State pharmaceutical assistance programs, manufacturer patient-assistance programs and the annual Medicare Open Enrollment Period can all reduce drug costs. Reviewing your Part D plan every autumn against your current prescriptions is one of the simplest ways to save money.
