What Is the Medicare Savings Program?

The Medicare Savings Program (MSP) is a Medicaid-administered program that can assist people enrolled in Medicare with limited income.   You can qualify for different benefits depending on your income level.  The MSP can help pay for Medicare premiums and for other cost-sharing expenses. When you qualify you may also automatically get Extra Help, the federal program that helps pay most of your Medicare prescription drug (Part D) plan costs.

Important Note: There is no resource test (reporting of assets) for the MSP programs. This means that Medicare beneficiaries who may not qualify for Medicaid because of excess resources (assets) can potentially qualify for some level of the MSP Program, even Full Medicaid status, based on income alone.  It’s worth trying.

Medicare vs. Medicaid

Medicare is federal health insurance, for people age 65 and older or certain younger individuals with disabilities. It’s based mainly on age or disability status—not income.

Medicaid is a state and federal program based on income and financial need. Medicaid can help pay for healthcare costs that Medicare may not fully cover.  Some people qualify for both programs at the same time. This is commonly called being “dual eligible.”

What Is a Dual Medicare Advantage Plan?

If you qualify for both Medicare and Medicaid - or certain levels of the MSP program, you may also qualify for a Dual Medicare Advantage Plan, often called a D-SNP (Dual Eligible Special Needs Plan). A Dual plan works similarly to a regular Medicare Advantage plan because it combines Medicare Part A & Part B and usually includes Part D prescription drug coverage.  However, Dual plans are specifically designed to help coordinate both your Medicare and Medicaid benefits together in one plan.  They often include additional benefits and support beyond what many regular Medicare Advantage plans provide.  Depending on the plan and level of Medicaid eligibility, benefits may include:

• Enhanced Prescription drug coverage

• Dental/Vision/Hearing

• OTC/Flexible Spending allowance

• Transportation assistance in some cases

• Fitness benefits

• Care coordination services

The Bottom Line

Dual Eligible Medicare Advantage Plans can provide valuable healthcare coverage and financial assistance for people who qualify.  Because eligibility rules and income limits can change, it’s important to review your situation carefully to see what programs and benefits may be available to you.  If you’d like help understanding your options or checking eligibility, I’m here to help make the process simple.

ABC Medicare Plans Broker 631-337-3625

Medicare Savings Program