Medicare Savings Programs in 2027: Who Qualifies and How to Apply

Medicare Savings Programs (MSPs) are state programs that help pay Medicare costs for people with limited income and savings. In most states, a single person with monthly income up to $1,816 and resources up to $9,950 can qualify in 2026 for help with the Part B premium, which is $202.90 a month. If you get an MSP, you also get Extra Help with Part D drug costs automatically.

Medicare Savings Programs at a Glance

Sources: Medicare.gov, Medicare Savings Programs; SSA POMS HI 00815.023. Federal limits for all states except Alaska and Hawaii. Many states use higher limits.

What Is a Medicare Savings Program?

An MSP is a Medicaid benefit for people on Medicare. Your state runs it, and federal rules set the minimum standards. There are four programs. Each one has its own income limit and pays for different costs.

You do not need full Medicaid to get an MSP. KFF found that in 2019, about 3.3 million of the 10.3 million people in an MSP got help with premiums or cost sharing without full Medicaid. If you have both, see our guide to having Medicare and Medicaid at the same time.

What Each Program Pays

Qualified Medicare Beneficiary (QMB)

QMB is the most complete program. It pays your Part A premium (if you do not get Part A free) and your Part B premium. It also pays Part A and Part B deductibles, coinsurance and copays. Medicare providers are not allowed to bill you for covered services, though you may get a bill for a small Medicaid copay.

Bring your Medicare card and your Medicaid or QMB card to every visit, so your doctor knows not to bill you.

Specified Low-Income Medicare Beneficiary (SLMB)

SLMB pays your Part B premium. You must have both Part A and Part B.

Qualifying Individual (QI)

QI also pays your Part B premium. It has the highest income limit of the three main programs. You must reapply every year. States approve QI on a first-come, first-served basis, and people who had QI the year before get priority. You cannot get QI if you qualify for other Medicaid coverage.

Qualified Disabled and Working Individual (QDWI)

QDWI is for people with a disability who went back to work and lost premium-free Part A. It pays only the Part A premium.

2026 Income and Resource Limits

The table above shows the 2026 federal limits. They stay in effect until the 2027 limits come out. New MSP limits are based on the federal poverty guidelines, which HHS updates each January, and the new limits usually follow in the spring.

A few details matter when you check your numbers:

• The limits include $20. SSA adds the $20 general income exclusion to each poverty-based limit, so that first $20 is already built in.
• Alaska and Hawaii are higher. In 2026, the QMB limit for one person is $1,683 a month in Alaska and $1,550 in Hawaii.
• Resources means savings and other assets. The federal limit for QMB, SLMB and QI is $9,950 for one person and $14,910 for a married couple.

Many States Use Higher Limits or Skip the Asset Test

The federal limits are a floor, not a ceiling. States can raise them by not counting some types of income or assets, and some have dropped the resource test.

KFF reports that in 2026, 18 states (KFF counts Washington, D.C., as a state) have raised income or savings limits for Medicare beneficiaries above the federal minimums. The other 33 use the federal rules.

Rules can change. California dropped its asset test in 2024, then brought one back on January 1, 2026. The new California limits are $130,000 for one person and $195,000 for a couple, still far above the federal level.

Medicare.gov’s advice is simple: apply even if you think your income or savings are too high. Your state makes the final call.

How Much an MSP Can Save You

The standard Part B premium is $202.90 a month in 2026. If an MSP pays it, you keep $2,434.80 a year. If your premium comes out of your Social Security check now, it should stop coming out once the state starts paying.

CMS has not announced the 2027 Part B premium yet. It usually does so in mid-November. The 2026 Medicare Trustees Report projects $209.50 a month. If that holds, MSP help would be worth $2,514 a year in 2027. See our breakdown of 2027 Medicare plan costs and how the premium affects the 2027 Social Security COLA.

QMB saves more. It also covers the Part B deductible ($283 in 2026) and the Part B coinsurance you would otherwise owe. For people who do not get Part A free, it covers that premium too, which is up to $565 a month in 2026.

An MSP Gets You Extra Help Automatically

CMS says people who enroll in an MSP automatically qualify for Extra Help, the program that lowers Part D drug costs. You do not need a separate application.

With Extra Help, you pay no more than $12.65 per covered drug in 2026. For 2027, the maximum copays are $5.80 for a generic and $14.40 for a brand-name drug. Read our full guide to Extra Help with Medicare drug costs in 2027.

How to Apply for a Medicare Savings Program

You apply through your state Medicaid office, not through Medicare or Social Security. To find your state’s office, use the state contact list on Medicaid.gov.

1. Gather your papers. Have your Medicare card, proof of income (such as Social Security and pension statements) and recent bank statements ready.
2. Contact your state. Ask how it takes applications. Options vary by state.
3. Answer follow-up requests quickly. Your state may ask for more documents before it decides.
4. Reapply if you have QI. QI must be renewed every year.

There is a second path. When you apply for Extra Help through Social Security, SSA sends your information to your state to start an MSP application, unless you tell it not to. Your state then contacts you.

For free one-on-one help, call your State Health Insurance Assistance Program (SHIP) at 877-839-2675.

MSPs and Medicare Open Enrollment

Medicare open enrollment runs October 15 to December 7, 2026, for coverage that starts January 1, 2027. An MSP does not change your plan choices during that window, but the Extra Help that comes with it lets you make certain drug coverage changes once a month all year.

If you also have full Medicaid, you may also be able to join a plan built for people with both. Learn more about a dual eligible Medicare Advantage plan, and use our Medicare open enrollment guide to compare your options before December 7.

Frequently Asked Questions

What is the income limit for the Medicare Savings Program in 2026?

In most states, the 2026 monthly income limit is $1,350 for one person for QMB, $1,616 for SLMB and $1,816 for QI. For married couples, the limits are $1,824, $2,184 and $2,455. Many states use higher limits.

Will the Medicare Savings Program pay my Part B premium in 2027?

Yes, if you qualify. QMB, SLMB and QI all pay the Part B premium. CMS has not set the 2027 premium yet. The Medicare Trustees project $209.50 a month, up from $202.90 in 2026.

Can I have savings and still qualify for an MSP?

Yes. The federal resource limit for QMB, SLMB and QI is $9,950 for one person and $14,910 for a couple in 2026. Some states use higher limits or do not count assets at all.

Does a Medicare Savings Program qualify me for Extra Help?

Yes. People who enroll in an MSP automatically qualify for Extra Help with Part D drug costs. You do not need to file a separate application.

How do I apply for a Medicare Savings Program?

Apply through your state Medicaid office. You can find its contact information on Medicaid.gov. Applying for Extra Help through Social Security also starts an MSP application with your state unless you opt out.

Sources

• Medicare.gov, Medicare Savings Programs
• SSA POMS HI 00815.023, Medicare Savings Programs Income and Resource Limits (2026)
• SSA POMS HI 00815.025, SSA Outreach to Low-Income Medicare Beneficiaries
• KFF, Medicaid Eligibility Levels for Older Adults and People with Disabilities (Non-MAGI) in 2026 (April 30, 2026)
• KFF, Help with Medicare Premium and Cost-Sharing Assistance Varies by State (April 20, 2022)
• CMS, 2026 Medicare Parts A & B Premiums and Deductibles
• CMS, 2026 Medicare Trustees Report
• CMS, Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027 (September 28, 2026)
• CMS, Announcement of CY 2027 Medicare Advantage Capitation Rates and Part C and Part D Payment Policies (April 6, 2026)
• Medicare.gov, Special Enrollment Periods
• Medicaid.gov, Where Can People Get Help With Medicaid & CHIP?
• HHS ASPE, Poverty Guidelines
• SHIP National Technical Assistance Center

The views and opinions expressed are those of the authors and do not necessarily reflect the official policy or position of MedicareGuide.com or HealthCare, Inc.