The Medicare Savings Program helps eligible people on Medicare with limited income and resources pay some or all of their Medicare costs. These programs are run by each state’s Medicaid office, but federal guidelines set the basic structure and annual income limits.
In 2026, the income and resource thresholds have been updated from 2025 levels to reflect cost‑of‑living adjustments and federal poverty guidelines.
Understanding these new limits is important if you are applying for help with Medicare premiums and cost‑sharing in 2026.
Medicare Savings Program
The Medicare Savings Program (MSP) is a set of four assistance programs that help qualified Medicare beneficiaries with Medicare Part A (hospital) and Part B (medical) costs. The programs are:
Calculate Your 2026 COLA Increase →- Qualified Medicare Beneficiary (QMB)
- Specified Low‑Income Medicare Beneficiary (SLMB)
- Qualifying Individual (QI)
- Qualified Disabled and Working Individual (QDWI)
All MSPs are administered by state Medicaid agencies, but the income and resource limits are based on federal standards. You must apply through your state Medicaid office to receive benefits.
Even if you think you do not qualify, applying can be useful because states sometimes set higher income or resource allowances than federal minimums.
How Do Income Limits Work in 2026?
Every MSP has a monthly income limit and a resource limit. Income includes most money you receive each month such as Social Security, pensions, and wages after a standard $20 disregard. Resource limits include things like savings and investment accounts, but do not count your home or one vehicle in most cases.
States can increase limits or disregard certain resources, so you should contact your state Medicaid office for exact figures where you live.
Here are the federal baseline income and resource limits for 2026:
Qualified Medicare Beneficiary (QMB)
- Helps pay Part A and Part B premiums, coinsurance, copayments, and deductibles.
- Individual monthly income limit: $1,350
- Married couple monthly income limit: $1,824
- Individual resource limit: $9,950
- Married couple resource limit: $14,910
If you qualify for the QMB program, your Medicare providers generally cannot bill you for covered cost‑sharing amounts. You also qualify automatically for the Extra Help prescription drug subsidy.
Specified Low‑Income Medicare Beneficiary (SLMB)
- Helps pay Part B premiums only.
- Individual monthly income limit: $1,616
- Married couple monthly income limit: $2,184
- Resource limits: Same as QMB
SLMB coverage is less comprehensive than QMB but still provides valuable savings on your Medicare Part B monthly premium. You also qualify for Extra Help for prescription drugs if eligible.
Qualifying Individual (QI)
- Helps pay Part B premiums only.
- Individual monthly income limit: $1,816
- Married couple monthly income limit: $2,455
- Resource limits: Same as QMB
QI benefits are funded by the federal government but administered by states. Unlike QMB and SLMB, you must reapply every year and the program operates on a first‑come, first‑served basis in some states.
Qualified Disabled & Working Individual (QDWI)
- Helps pay Part A premiums only.
- Individual monthly income limit: $5,405
- Married couple monthly income limit: $7,299
- Individual resource limit: $4,000
- Married couple resource limit: $6,000
This program targets people with disabilities who have returned to work but lost premium‑free Part A coverage. It is less commonly used but provides valuable premium support.
What Counts as Income and Resources?
For MSP eligibility, most types of money you receive each month count as income. This includes Social Security, pensions, annuities, retirement income, wages, and self‑employment earnings.
A standard $20 monthly income disregard applies, meaning the first $20 of your countable income is not considered.
Resource limits typically include savings accounts, stocks, and bonds, but do not include your home, one vehicle, personal belongings, or life insurance below certain values.
States may disregard additional resources under state rules.
How to Apply for the Medicare Savings Program
You must apply for an MSP through your state’s Medicaid office or agency. Applications are available online or through local offices. You will need to provide proof of Medicare enrollment, income, and resources. If your situation changes, report it to your state to keep your eligibility up to date.
Applying is often worthwhile even if your income seems above the limits, because:
- States can set higher income thresholds or offer resource disregards.
- Certain income such as tax‑exempt Social Security benefits might be excluded by your state.
- Extra Help prescription drug savings usually come automatically with MSP eligibility.
What Are the Benefits of MSP Eligibility?
If you qualify for an MSP, you can save significant money on Medicare costs:
- QMB: Paid Medicare premiums and reduced out‑of‑pocket costs for most services.
- SLMB and QI: Part B premium assistance.
- QDWI: Part A premium assistance for working disabled individuals.
- Extra Help: Automatic assistance with Medicare Part D prescription drug costs for most MSP beneficiaries.
Each program works slightly differently, so understanding the income limits and benefits can help you make better financial and healthcare decisions in 2026.
