While Medicare covers many essential health care services for older adults, it comes with some out-of-pocket costs. Those costs can add up quickly and put stress on your budget, especially when you’re on a fixed income.  If you have trouble affording Medicare, the Medicare Savings Programs (MSPs) can help. 

What are the Medicare Savings Programs?

The Medicare Savings Programs (MSPs) are Medicaid-administered benefits that help cover Medicare premiums and out-of-pocket costs, such as premiums, deductibles and copayments. Program names may be slightly different depending on the state you live in. Sometimes, MSPs are called “Medicare Buy-In Programs” or “Medicare Premium Payment Programs.”

There are four different MSPs:

• Qualified Medicare Beneficiary (QMB): Helps pay for Part A premium and Part B premium ($202.90 in 2026), deductibles, coinsurance, and copayments
• Specified Low-Income Medicare Beneficiary (SLMB): Helps pay for Part B premium
• Qualifying Individual (QI): Helps pay for Part B premium
• Qualified Disabled Working Individual (QDWI): Helps pay for Part A premium

You can't choose which MSP to join. Instead, the state reviews your application and enrolls you in the program that best matches your income, assets, and other information.

Enrollment in an MSP could save you more than $2,400 each year. Even if you're not eligible for Medicaid, you may qualify for one of these programs to help cover your Medicare costs.

Who qualifies for Medicare Savings Programs?

These programs are available for Medicare beneficiaries with limited means who do not qualify to be fully enrolled in Medicaid. You must have at least Medicare Part A and generally have income at or below 135% of the federal poverty guidelines/levels (FPL) to qualify. In most states, you must also meet a resource limit. Learn more about Medicare Savings Programs eligibility.

If you're enrolled in one of the MSPs, you automatically qualify to receive Medicare Part D "Extra Help."

What is Medicare Part D Extra Help?

Extra Help (also called the Part D Low-Income Subsidy or LIS), is a federal program that helps people with limited income and resources pay for their Medicare Part D premiums and drug costs. Part D provides prescription drug coverage. Like Medicare Parts A and B, it has out-of-pocket costs. 

What exactly does Extra Help cover?

Most people who qualify will pay:

• No premiums
• No deductibles, and
• No more than $5.10 for each generic/$12.65 for each brand-name drug their plan covers in 2026.

If you qualify for Extra Help, you may be able to join a Medicare Part D plan at any time and not have to pay a late enrollment penalty. Plus, you can change Part D plans at any time, as often as once per month. The Extra Help benefit is valued at $5,700 per year by the Social Security Administration.

Who qualifies for Part D Extra Help? Extra Help is generally available to people with income of up to 150% of the federal poverty level (FPL) who also have limited resources. Get the details on Part D Extra Help income limits. 

How can I check my eligibility for the MSPs or Part D Extra Help?

To see if you may be eligible for the Medicare Savings Programs or Part D Extra Help, visit BenefitsCheckUp, NCOA’s free, online benefits finder tool. 

To get started, follow the four simple steps below:

1. Visit BenefitsCheckUp.org, enter your ZIP code, and click the green search button (magnifying glass)

   

2. Check the box next to "Health Care & Medication" and click "Next"

   

3. Choose the program you want to explore. Click "Learn More"

   

4. Click on the link on the right-hand side that says, "See If You May Be Eligible" and answer a few questions

   

If you qualify for one of the Medicare Savings Programs and/or Part D Extra Help, you can start the application process—and even get help applying if you need it.

We encourage you to use BenefitsCheckUp to see if you're eligible for these and other programs that can help you afford daily expenses and stay healthy. It's fast, easy, and free!