The Medicare Savings Programs (MSPs) are federal programs administered by each state to help Medicare beneficiaries with limited income reduce or eliminate their Medicare-related costs. These programs are some of the most valuable forms of financial assistance available to seniors and individuals with disabilities, yet millions of eligible beneficiaries never apply simply because they do not know the programs exist or misunderstand the requirements.
This guide explains the four types of Medicare Savings Programs—QMB, SLMB, QI, and QDWI—what they cover, who qualifies, and how to apply.
What Are Medicare Savings Programs?
Medicare Savings Programs are Medicaid-administered programs funded by the federal government. Their purpose is to help eligible Medicare beneficiaries pay for Medicare premiums and out-of-pocket expenses.
There are four main MSP categories:
- QMB (Qualified Medicare Beneficiary)
- SLMB (Specified Low-Income Medicare Beneficiary)
- QI (Qualifying Individual)
- QDWI (Qualified Disabled and Working Individual)
Each program has different income and resource requirements, but all provide substantial financial benefits.
QMB: Qualified Medicare Beneficiary Program
What QMB Covers
QMB is the most comprehensive Medicare Savings Program. It covers:
- Medicare Part A premiums (if applicable)
- Medicare Part B premiums
- Medicare deductibles
- Medicare coinsurance
- Medicare copayments
Individuals enrolled in QMB cannot be billed for Medicare-covered services. Medical providers must accept Medicare’s payment as full payment.
This program can reduce Medicare-related costs to almost zero for qualifying individuals.
Who Qualifies for QMB
QMB eligibility is based on:
- Limited monthly income
- Limited resources or assets
- Enrollment in Medicare Part A and Part B
Income and resource limits vary by state, but QMB typically has the strictest limits among MSP programs.
SLMB: Specified Low-Income Medicare Beneficiary Program
What SLMB Covers
SLMB helps pay for the Medicare Part B premium only.
It does not cover deductibles, copayments, or coinsurance.
Despite being more limited than QMB, SLMB still provides meaningful financial relief by eliminating the monthly Part B premium.
Who Qualifies for SLMB
SLMB is designed for individuals with slightly higher income levels than QMB but who still need financial assistance.
Eligibility requires:
- Enrollment in Medicare Part A
- Limited monthly income
- Limited resources
- Income above QMB limits but within SLMB thresholds
QI: Qualifying Individual Program
What QI Covers
QI also helps pay the Medicare Part B premium.
It is similar to SLMB, but with a few important differences:
- QI funding is limited each year
- Applications are approved on a first-come, first-served basis
- Beneficiaries must reapply annually
- QI cannot be combined with Medicaid
Who Qualifies for QI
QI is intended for individuals whose income is slightly higher than SLMB limits but still low enough to require assistance.
To qualify:
- You must have Medicare Part A
- Your income must fall within QI-specific limits
- You must not be receiving Medicaid
QDWI: Qualified Disabled and Working Individual Program
What QDWI Covers
QDWI helps pay for the Medicare Part A premium for individuals who:
- Are under age 65
- Previously received Social Security disability benefits
- Returned to work and lost premium-free Part A
- Need assistance paying the Part A premium
Who Qualifies for QDWI
QDWI has unique requirements:
- Must be disabled and working
- Must have lost free Part A due to returning to work
- Must meet specific income and resource limits
- Cannot be receiving Medicaid at the same time
This program is designed to support individuals who are transitioning back into the workforce after disability.
How Much Can Medicare Savings Programs Save You?
Savings vary based on the program you qualify for:
Part B Premium Savings
The standard Part B premium in 2025 is approximately $174.70 per month.
If SLMB, QI, or QMB pays your premium, you save more than $2,000 per year.
QMB Savings
With QMB, beneficiaries may pay nothing for:
- Doctor visits
- Hospital care
- Lab work
- Medical equipment
- Skilled nursing
- Outpatient services
For many individuals, QMB can eliminate thousands of dollars in out-of-pocket expenses each year.
How Medicare Savings Programs Work With Extra Help (LIS)
One of the most important benefits of MSP enrollment is automatic qualification for Extra Help.
Extra Help reduces prescription drug costs by:
- Lowering Part D premiums
- Lowering deductibles
- Reducing copayments
- Eliminating coverage gaps
Anyone approved for QMB, SLMB, or QI is automatically enrolled in Extra Help without a separate application.
How to Apply for Medicare Savings Programs
MSPs are administered by each state’s Medicaid agency.
To apply, you generally need:
- Proof of income
- Proof of assets
- Proof of Medicare enrollment
- Identification documents
- State residency documentation
Applications may be submitted:
- Online through the state Medicaid portal
- By phone
- By mail
- In person at a Medicaid or social services office
Processing typically takes 30–45 days.
Common Misconceptions About MSP Eligibility
Many beneficiaries mistakenly believe they do not qualify for Medicare Savings Programs due to:
- Income that is slightly above limits
- Having modest savings
- Being on Medicare Advantage
- Having retirement accounts
- Not receiving Medicaid
However, income and resource limits are higher than many people assume.
Millions of eligible Americans never apply.
Conclusion
Medicare Savings Programs are some of the most powerful federal financial assistance options available to Medicare beneficiaries. Whether you need help paying the Part B premium, eliminating deductibles and copayments, or reducing prescription drug costs through automatic Extra Help enrollment, MSPs offer substantial support.
Learning the differences between QMB, SLMB, QI, and QDWI is the first step toward lowering your healthcare expenses and improving your financial stability.
Need Help Determining Which Medicare Savings Program You Qualify For?
Menke Insurance can review your situation, check your eligibility, guide you through the application process, and help you reduce your Medicare costs.
There is no cost for our assistance.
Contact Menke Insurance today for free Medicare guidance and personalized support.