What Is a Medicare Savings Program?

Medicare is a public health insurance program provided by the federal government for all eligible citizens. However, even though Medicare is a public benefit, only part of its coverage is free. You actually have to pay monthly premiums for other some aspects of coverage. State governments and the federal government have programs that help people with low income to pay for the costs of Medicare coverage that they need.

Medicare Savings Program

• Medicare Savings Programs are state programs that are created to help people with low income who qualify to enroll in Medicare to pay for the costs of its coverage. These programs help you to pay for your Medicare premiums; some programs also help you to pay for your Medicare Part A and Part B deductibles, copayments and coinsurance. These programs are very helpful since many people who qualify to receive Medicare benefits usually have low income. Many are senior citizens who are no longer working and disabled individuals incapable of working.

Medicare Savings Program Eligibiity

• To be eligible to receive help from state programs to pay your premiums, you are required to prove that you have low income. Individuals with higher levels of income who are capable of paying their monthly premiums without any problems are not eligible for help and must pay their premiums with their own money. To qualify, you must already be enrolled in Medicare Part A. Part A is free for all those recipients who paid Medicare tax while working. According to the handbook "Medicare and You," as of 2011, your income has to be lower than $1,239, and the value of your resources must not exceed $6,600, if you are single. If you are married, these limits rise to $1,660 for income and $9,910 for resources.

State Exceptions

• Since every state is different from each other and income levels are different, the income and resource limits for your state may differ a little from the limits mentioned above. This means that, even if your income or the value of your resources is higher than the limits stipulated by Medicare, you might still qualify for help. Call your state Health Insurance Assistance Program (numbers are available in the handbook Medicare and You) to find out about their specific rules. You can also call your state´s Medicaid office for more information.

Considerations

• People who might need help paying Medicare costs and who meet the necessary income restrictions are only eligible for receiving help if they already have Medicare Part A. Although many people qualify for free Part A coverage, some might not qualify. If you have never worked and paid Medicare tax, you do not qualify for free premiums. However, you are allowed to purchase Medicare Part A and pay monthly premiums for its coverage. If you need help paying for these premiums, you can apply for Medicare Savings Program benefits after you enroll in Part A and show that you are willing to pay the premiums.