During the Great Recession, artist Jeannie Friedman was hit hard.
“I was always very self-sufficient financially,” she says. “I lost my savings and my house and moved from upstate New York in Rhinebeck to the Bronx with virtually no savings and a very, very fixed income based on Social Security.”
Friedman tried to figure out a way to save money again, including taking extra gigs like dog-sitting, but she knew she’d still need more help to pay for necessities, such as Medicare.
“You wake up at four in the morning, and you’re trying to figure out if you can make all the bills that month. I’ve had so many of those wake-up mornings, really. Everything feels urgent. It’s awful because you feel alone,” she says.
Friedman then found out about Medicare Savings Programs, which could help her pay her Medicare costs, enabling her to continue having health insurance — if she qualified. Which she did.
Although Medicare gives many people over 65 access to quality health insurance at a relatively inexpensive price, for people like Friedman, it’s still not affordable enough.
In fact, more than one-third of Medicare beneficiaries (36%) delayed or went without care because of cost concerns, and 1 in 4 had an income of less than $21,000 a year, according to KFF.
Enter Medicare Savings Programs.
[READ: Get These 9 Screenings to Keep Your Medicare Costs Down]
Medicare Savings Programs
Medicare Savings Programs (MSPs) are Medicaid-run programs designed to help low-income Medicare beneficiaries with premiums (such as the Medicare Part B premium of $202.90 in 2026), deductibles and other out-of-pocket costs. They also relieve the burden of costs when Medigap, Medicare Advantage or other workaround programs are also not affordable.
“The MSPs have so many added benefits that not everyone is aware of, like eliminating late enrollment penalties, reducing Part D drug costs and providing additional opportunities to enroll in Medicare for those who missed their enrollment window,” says Melanie Lambert, senior Medicare advocate at the Center for Medicare Advocacy in Washington, D.C.
Unfortunately, many people don’t take advantage of these programs.
“The programs have generally been underutilized, mostly because people don’t know about them,” notes Alan Weil, senior vice president for public policy at AARP in Washington, D.C.
[READ Understanding Parts of Medicare: A Through N Explained]
How Do Medicare Savings Programs Work?
Medicare Savings Programs have four categories with distinct eligibility requirements and income limits to help people afford Medicare. If you don’t qualify for one program, you might qualify for another.
Here are the federal guidelines for the four programs for 2026:
[CHART]
[READ: How Do I Know When I’m Eligible for Medicare?]
How to Qualify for Medicare Savings Programs
Because MSPs are state-run programs, the actual requirements vary by state. Some states have higher income limits or don’t count some types of income or assets, also called “resources.” In addition, the federal limits are higher in Alaska and Hawaii.
In general, resources include:
— Money in a checking, savings or retirement account
— Stocks
— Bonds
“Certain types of income, such as income from active employment, are often not counted in full when determining eligibility for MSPs, so beneficiaries who are still working should consider applying even if they are above the income limits for their state,” Lambert says.
Known as “disregards,” the types of income that are not counted toward income limits may include:
— First $20 of monthly income
— First $65 of monthly wages
— Half of monthly wages (after initial $65 deduction)
— Food stamps from Supplemental Nutrition Assistance Program (SNAP)
Asset disregards may include:
— Primary house
— One car
— Household goods and wedding/engagement rings
— Burial spaces
— Burial funds (up to $1,500 per person)
— Life insurance (less than $1,500)
How to Apply for Medicare Savings Programs
Applying for MSPs can be confusing and complicated.
Each state has its own eligibility rules and application process, so the best place to start is with your state’s Medicaid agency. You can look for information about eligibility for each state on the Medicaid website or call the state agency directly with the listed phone number.
You will likely be required to fill out paperwork and gather necessary documents, including proof of income and assets.
How to Get Help Applying
Because Medicare Savings Programs are complex, most people will need an advocate to help them apply.
Resources for getting help include:
— Medicare agents and brokers. Medicare agents and brokers can help people navigate Medicare and choose a health plan best suited for their personal needs.
— State Health Insurance Assistance Programs (SHIPs). SHIPs are a free resource to help people understand eligibility and the enrollment process. Through SHIP, you can talk with a certified Medicare expert. To find your local SHIP, go to shiphelp.org or call 1-877-839-2675.
— Nonprofits. Other local nonprofit organizations in your state may offer free services to help you apply. For example, the Medicare Rights Center offers free services in New York state.
— Eldercare locator. The Eldercare locator tool, provided by the federal Administration for Community Living, can help you find your local public or private nonprofit Area Agency on Aging. Just plug in your ZIP code to access the free database.
— Paid services. Organizations such as Aging Life Care Association and elder law attorney groups offer help for a fee, but they cost money that those applying for Medicare Savings Programs might not have.
— Family and friends. Reach out to someone you trust in your support system to help you navigate this complicated process or to assist you in contacting an organization that can.
What to Do If Your Application Is Denied
If your application is denied, you have the right to appeal.
The denial letter from your state Medicaid office will include instructions on how to file an appeal, and local SHIP offices or a Medicare advocate can help walk you through the process.
“Support is available to make sure you get a fair review,” Weil says.
Bottom Line
No matter what Medicare plan you choose, you’re likely going to be on the hook for more than just one monthly premium, along with your coinsurance, deductible or copay.
In addition, unless you have Medicare Advantage or Medigap supplemental insurance, Medicare has no out-of-pocket maximums. So, if you have extended or multiple hospital stays, several prescription medications or a chronic condition that requires a lot of visits to the doctor, those costs can add up to thousands of dollars fast.
Thankfully, MSPs can provide much-needed support to relieve some of the financial burden of affording health care.
“The Medicare Savings Programs can be a lifeline for so many beneficiaries who struggle to afford their Medicare cost-sharing,” says Kata Kertesz, a managing policy attorney at the Center for Medicare Advocacy.
Although the process can be confusing, there are resources out there to help you get into one (or more) of the Medicare Savings Programs.
“No one has to navigate it alone — help is out there,” Weil says.
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What Are Medicare Savings Programs? originally appeared on usnews.com
Update 03/20/26: This story was published at an earlier date and has been updated with new information.