Medicare Savings Programs - Help with Medicare Costs

MSP stands for Medicare Savings Program, but the name is actually a misnomer. Why? The answer is because MSPs are actually a form of Medicaid for low-income older adults, despite having the word Medicare in the name. MSP covers the cost of Medicare Part B premiums (hence the inclusion of Medicare in the name), and in some cases, copays and deductibles. This results in real savings for those who need it most.

The current Medicare Part B premium for most people is $202.90 a month. Saving that much money in premiums each month nets an individual almost $2,500 in savings annually. There are multiple different forms of MSP that are based off income and assets. If your income and assets qualify you for an MSP that covers the costs of co-pays and deductibles, savings are even higher. Regardless of which MSP you get, you are also automatically enrolled in the federal Low-Income Subsidy Program when approved for an MSP, which saves out of pocket costs on prescription drugs. All this is real money that older adults can put towards food, housing and transportation costs.

MSPs are available to individuals with low income and low assets. To qualify for an MSP in Colorado, your gross monthly income generally must be less than $1,816 a month if single, and $2,455 a month if married. The only exception to this income requirement is if your income is earned income from working. If that is the case, your income can potentially be higher than these limits without disqualifying you.

You must also have less than $11,450 in assets if single, and $17,910 if married. Assets include most things you can convert to cash other than your primary residence, your primary vehicle and your personal possessions. Some examples of assets include savings accounts, retirement accounts, the cash surrender value of life insurance policies, stocks, bonds and annuities.

Need help with Medicare costs? Call Benefits in Action, your guide to food and health-related benefits at 720-221-8354.