Good news for Medicare recipients! In 2025, Americans with lower incomes may be eligible for even more savings on their healthcare costs. Medicare Savings Programs (MSPs) are expanding, helping millions pay for premiums, deductibles, and even prescription drugs.
With medical expenses rising, knowing how much financial help is available can make a big difference. Here’s a breakdown of the latest benefits, who qualifies, and how you can take advantage of these savings.
What Are Medicare Savings Programs?
Medicare Savings Programs are state-run programs that help cover costs for people with limited income and resources. There are four main programs, each offering different levels of assistance:
- Qualified Medicare Beneficiary (QMB) Program: Covers Medicare Part A and Part B premiums, plus deductibles, coinsurance, and copayments.
- Specified Low-Income Medicare Beneficiary (SLMB) Program: Helps pay for Part B premiums.
- Qualifying Individual (QI) Program: Also covers Part B premiums, but funds are limited and given on a first-come, first-served basis.
- Qualified Disabled and Working Individual (QDWI) Program: Pays for Part A premiums for certain disabled individuals under age 65 who are still working.
If you qualify for any of these programs, you could see major savings on your healthcare costs in 2025.
Who Qualifies for These Savings?
To be eligible, your monthly income and resources must be within certain limits. These numbers are adjusted each year, and for 2025, they are:
QMB Program:
- Individual Income: Up to $1,325 per month
- Couple Income: Up to $1,783 per month
- Resource Limit: $9,660 (individual), $14,470 (couple)
SLMB Program:
- Individual Income: Up to $1,585 per month
- Couple Income: Up to $2,135 per month
- Resource Limit: $9,660 (individual), $14,470 (couple)
QI Program:
- Individual Income: Up to $1,781 per month
- Couple Income: Up to $2,400 per month
- Resource Limit: $9,660 (individual), $14,470 (couple)
QDWI Program:
- Individual Income: Up to $5,302 per month
- Couple Income: Up to $7,135 per month
- Resource Limit: $4,000 (individual), $6,000 (couple)
Some states have different rules and may allow higher limits. Check with your state’s Medicaid office to see if you qualify.
Extra Help for Prescription Drugs
If you qualify for the QMB, SLMB, or QI programs, you’re also automatically eligible for the Extra Help program, which reduces Medicare Part D prescription drug costs.
In 2025, Extra Help beneficiaries will pay no more than:
- $12.15 for brand-name drugs
- $4.90 for generic medications
That means you can get the medications you need at a fraction of the cost.
Lower Drug Prices Coming in 2025
On top of these savings, the federal government is also working to cut prescription drug costs. The Biden administration has negotiated lower prices for 10 expensive medications, saving Medicare patients an estimated $1.5 billion in 2026.
Popular drugs like Ozempic and Wegovy—used for diabetes and weight loss—are now included in these negotiations, which could lead to major savings for Medicare users.
How to Apply for Medicare Savings Programs
If you think you qualify, don’t wait! Applying is free and could save you hundreds or even thousands of dollars. Here’s how to apply:
- Visit your state Medicaid office – Each state has different rules, so check their website or call to find out what’s needed.
- Fill out an application – You’ll need to provide proof of income, resources, and Medicare enrollment.
- Get approved and start saving – If you qualify, your benefits will begin shortly after approval.
You can start the process by visiting medicare.gov for more details.
Final Thoughts
With Medicare costs rising, these savings programs can be a lifeline for millions of Americans. Whether it’s help with premiums, deductibles, or prescription drug costs, taking advantage of these benefits can make healthcare much more affordable in 2025.
Don’t miss out—check your eligibility and apply today!
