Call Us 516-319-2214 ☰ ˟
Get A Free Quote
Seniors Health Plan Advisors
Call 516-319-2214

To speak with Tony Calvacca

Your local New York Licensed Agent

  • HOME
  • Medicare Basics
    • Medicare Basics Video
    • Original Medicare (Part A and Part B)
    • Medicare Supplement Insurance (Medigap Policy)
    • Medicare Advantage Plans
    • Medicare Prescription Drug Coverage (Part D)
    • Enrolling in Medicare
  • Medicare Services
    • Free Private Medicare Consultations
    • Free Medicare Insurance Price Quotes
    • Free Medicare Information By Phone
    • Free Medicare Information By First Class Mail
    • Services For Businesses
  • BLOG
  • About Us
    • About Us
    • Our Location
    • Testimonials
  • Contact
Original Medicare
Part A & B
MEDICARE
SUPPLEMENT PLANS
MEDICARE
ADVANTAGE PLANS
PRESCRIPTION
DRUG PLANS
ENROLLING
IN MEDICARE
Home > Blog > Learn How a Medicare Savings Program (MSP) Can Help You Save Money on Your Medicare Costs
FRIDAY, JUNE 4, 2021

Learn How a Medicare Savings Program (MSP) Can Help You Save Money on Your Medicare Costs

Nearly all Americans are entitled to receive Medicare health insurance benefits at some point in their life, generally after they reach retirement age. However, though the Medicare program is taxpayer supported, it still obligates policyholders to pay for a certain portion of their medical care and benefits. 

Still, many people struggle to afford regular costs like their Medicare benefits, and you must continue to pay your premiums if you want to remain a Medicare participant. That’s why, for low-income individuals, New York (and most other states) have instituted Medicare Savings Programs (MSPs) to help alleviate cost burdens on those who need payment relief the most.  
Medicare papers with stethoscope
Let’s take a closer look at MSPs, consider how they work, and gain a better understanding of how enrolling in this critical benefit can help you save a lot of money on your Medicare costs. 

Understanding MSPs 

Low-income individuals often cannot afford some of the basic necessities of life, health insurance included. However, because the Medicare system is designed to offer health benefits to all Americans, accommodations have been made to make policies even more affordable for those who could struggle under the cost burdens imposed by the plan. 

  • Medicare Part A premiums (many people have a $0 premium, however) 

  • Medicare Part B premiums (vary by income brackets) 

  • Part A & Part B deductibles 

  • Coinsurance & copayment costs imposed for different medical services 



However, for low-income recipients, even these drastically reduced medical costs can seem like exceptional burdens. As a result, Medicare Savings Programs are available to help qualifying individuals continue to reduce their cost burden for care expenses. In New York, MSPs are administered by the state’s Medicaid program. However, they remain separate from Medicaid, and you are not required to purchase Medicaid in order to qualify for this benefit. 

What are the Different Types of MSPs? 

There are three primary types of MSPs available to New Yorkers. Each will cover different costs related to your Medicare expense burdens. 

  1. Qualifying Individual (QI) MSPs 

  1. Pays for your Part B premium 

  1. May receive up to three months retroactive reimbursement for Part B premiums (Note: only for premiums paid up to three months before your MSP effective date, and within the same year of that effective date) 

  1. You cannot have both QI and Medicaid 

  1. Specified Low-Income Medicare Beneficiary (SLMB) MSPs 

  1. Pays for your Part B premium 

  1. May receive up to three months retroactive reimbursement for Part B premiums 

  1. You can have both SLMB and Medicaid 

  1. Qualified Medicare Beneficiary (QMB) MSPs 

  1. Pays for Medicare premiums 

  1. Providers are prohibited from charging you for Medicare cost-sharing (deductibles, coinsurance, and copayments). This means you should not be billed for any Medicare-covered services you receive from Original Medicare providers or providers in your Medicare Advantage Plan’s network 

  1. You can have both QMB and Medicaid 

 

There are also Qualified Disabled and Working Individual (QDWI) MSPs. 

These plans will work alongside both Original Medicare and certain Medicare Advantage plans. However, you must meet low-income requirements in order to qualify for each benefit. Still, if you exceed the income requirements for one MSP, you might still qualify for an alternative plan. Applicants are also entitled to appeal a decision and request a hearing regarding a denied MSP application. 

Additionally, according to the Medicare Rights Center: New York disregards/excludes the cost of certain health insurance premiums from your income. For example, if you are over the income limit for an MSP but pay a premium for a Medigap or other secondary health insurance, you may deduct the premium from your gross monthly income to qualify. Sometimes a portion of your Part D premium can also be deducted from your income. The Part B premium ($148.50 deducted from your Social Security award) cannot be used as a disregard. 

While it might seem complicated to apply for an MSP, the benefits will pay off in the long run. This program is designed specifically to make health care more accessible for those in low-income brackets, so that they never have to be without the care they deserve. 

Source: Medicare Rights Center 
Posted 12:20 PM

Tags: medicare
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2023
  • 2022
  • 2021

  • medicare(8)
  • medicare part d(2)
  • medicare supplements(1)
  • open enrollment(1)
  • medicare plan d(1)
  • medigap coverage(1)

View Mobile Version
Facebook
Twitter
Google+
LinkedIn
Have Questions?
Get a Free Plan Review
How Can I Help You?

With a wide variety of Medicare plans to choose from it can be difficult to know if you are getting the best coverage for the lowest cost based on your needs. Fortunately, help is just a phone call away!

Contact Us
Resources
Original Medicare Part A & B
Medicare Supplement Plans
Medicare Advantage Plans
Prescription Drug Plans
Enrolling in Medicare
About Me
Blog
Testimonials
Contact Us
We serve All Counties in New York State. 150 Motor Parkway, Suite 401
Hauppauge, NY 11788

O: 516-319-2214
F: 866-783-3196
E: tony@seniorshealthplans.com
We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options.
By submitting your contact information you acknowledge a licensed insurance agent may contact you by phone, email or mail to discuss Medicare Advantage Plans, Medicare Supplement Insurance or Prescription Drug Plans. Seniors Health Plan Advisors is not affiliated with the U.S. Government or the Federal Medicare Program.
© Copyright 2021. All rights reserved. Powered by Insurance Website Builder.