Medicare Savings Programs

Are you over 65 and enrolled in Medicare but struggling with your healthcare and prescription costs?

You may qualify to have some of your medical expenses paid for — up to $7,000 a year — through government-run Medicare Savings Programs.

For more than 60 years, AARP Foundation has been helping people afford the essentials, including healthcare. We’re on a mission to help people over 50 with limited resources tap into available benefit programs, should they need it.

That’s why we’re offering this step-by-step guide to applying for Medicare Savings Programs.

What are Medicare Savings Plans?

The first thing to know is that Medicare Savings Programs are not health insurance — they’re programs that pay for certain Medicare expenses for you. These programs can help you pay for out-of-pocket costs such as premiums, copays, coinsurance, and deductibles without changing your current Medicare enrollment.

There’s no cost to participate and no one will ask you for money. Best of all, your current plan and doctors won’t change if you qualify.

To qualify for a Medicare Savings Program, you must have income and savings below a certain limit — and these limits go up each year. Even if you don’t think you qualify, you should still apply.

Am I Eligible?

Every state has slightly different guidelines. But in general, your income — and sometimes your savings — must be below certain limits. These limits go up every year.

• If single, your monthly income cannot be higher than $1,549 and your savings cannot be greater than $8,400
• If married, your combined income cannot be higher than $2,080 and your combined savings cannot exceed $12,600

How to Apply

Think you may qualify? Here are your next steps:

Step 1: Gather some documents

You’ll be asked to provide proof of the following:

• Who You Are: Your Social Security card, Medicare card, birth certificate, passport, or green card
• Your Address: A copy of your electric or phone bill
• Your Monthly Income: A Social Security Administration award letter, income tax return, or pay stubs

If you’re worried about sharing personal documents, we understand. Some states may allow you to apply online or over the phone, while others may ask you to mail in a paper application or deliver documents in person.

You can be sure you are working with a real government agency and not a scammer by typing in the Medicaid.gov website yourself. It’s also good to know that Medicaid will never charge you for or pressure you to enroll in a program.

Step 2: Tally your savings

You’ll also need to show your assets: any savings, checking, or retirement accounts. Good news! Some states do not count some or all of your assets, making it easier to qualify.

Step 3: Apply

Contact your State Medicaid Agency to apply for this money-saving benefit. Be sure to ask whether you also need to apply for Extra Help, the Medicare prescription benefit for which some states require an additional application.

Find Out If You Can Save Up To $7,000 A Year

More than 10 million people are already enrolled — but 2.5 million more are eligible.

Enrolling in a Medicare Savings Program may free up funds in your budget for other household expenses like groceries, rent, and electricity. 

Even if you’re unsure if you qualify, applying is the best way to find out if you could save up to $7,000 a year, thanks to this money-saving benefit program.