Medicare Health Insurance Plans That Pay Part B Premiums

There are three Medicare plans available to beneficiaries that pay for the Medicare Part B premium. These plans, which are state-managed federal programs, are part of the Medicare Savings Program designed to assist low-income seniors and others on Medicare with their health care costs. Some know the Medicare Savings Program as the Buy-in. Medicare Part B is the part of Medicare that pays for doctors and other medical costs, while Part A pays for in-patient hospital care.

Qualified Medicare Beneficiary (QMB)

• The Qualified Medicare Beneficiary (QMB) program provides the highest level of benefit under the Medicare Savings Program. To qualify for QMB, applicants must have household income and asset levels below that set by the state and federal governments. The income level is generally 100 percent of the federal poverty level. Recipients have their Medicare Part B premium paid as well as Part A and Part B co-payments and deductibles. For qualified beneficiaries who pay a premium for Medicare Part A because they did not work enough years to receive premium-free Part A, the QMB program pays for that, as well. In some states, payment for Medicare Part D prescription drug coverage is also a benefit of the QMB program. Specific premium cost levels are set, and if you enroll in a plan that falls below the limit, the state will pay the premium. The program generally subsidizes drug costs as well, with very low co-pays for branded and generic drugs.

Specified Low-Income Beneficiary (SLMB)

• To be eligible for SLMB, Medicare recipients must have income between 100 and 120 percent of the federal poverty level. You qualify based on an evaluation of your assets, but some states waive the asset requirement. SLMB beneficiaries have their Medicare Part B premium paid. However, they get no assistance with Part A and Part B co-payments and deductibles. SLMB beneficiaries may also get help paying the Medicare Part D prescription drug premium for plans under a certain cost, and they may get help with drug co-pays.

Qualifying Individual (QI)

• The Qualified Individual (QI) benefit mirrors that of SLMB in that recipients have only their Medicare Part B premium paid. They must pay their own Part A and Part B co-pays and deductibles. As with SLMB and QMB, some states include coverage of Medicare Part D costs as part of the QI benefit. To qualify for QI, you may have income up to 135 percent of the federal poverty level. You must apply annually for QI benefits as the program has limited funding.