2012 Income and Resource Levels for the Medicare Savings Programs

Medicare Savings Programs, sometimes abbreviated as “MSP,” are discussed in full beginning on page 16 of Managing Your Medicare. Remember that you apply for the Medicare Savings Programs with your state’s Medicaid program, and that states’ exceptions and disregards for the income limits given below, not to speak of their differing interpretations and waivers as to what counts as income, means that if you are anywhere near the limits shown below, you should always apply.

As the new income limits are different in both Alaska and Hawaii from the rest of the United States, in makes sense to give the 2012 income limits in three separate segments, as follows:

For the lower 48 states and the District of Columbia:

For the Qualified Medicare Beneficiary (QMB) program (which pays your Part B monthly premium, your annual deductibles and your Part B coinsurances), your income must be at or below 100 percent of the federal poverty level, which is now:

For an individual, $11,170 annually, or $931 monthly.

For a couple, $15,130 annually, or $1,261 monthly.

For each additional person in a family, add $3,960 annually, or $330 monthly.


For the Specified Low-Income Medicare Beneficiary (SLMB) program (which pays your Part B monthly premium), your income must be at or below 120 percent of the federal poverty level, which is now:

For an individual, $13,404 annually, or $1,117 monthly.

For a couple, $18,156 annually, or $1,513 monthly.

For each additional person in a family, add $4,752 annually, or $396 monthly.


For the Qualifying Individual (QI) program (which pays your Part B monthly premium), your income must be at or below 135 percent of the federal poverty level, which is now:

For an individual, $15,080 annually, or $1,257 monthly.

For a couple, $20,426 annually, or $1,702 monthly.

For each additional person in a family, add $5,346 annually, or $446 monthly.


For the Qualified Disabled & Working Individuals (QDWI) program (which pays your Part A monthly premium), your income must be at or below 200 percent of the federal poverty level, which is now:

For an individual, $22,340 annually, or $1,862 monthly.

For a couple, $30,260 annually, or $2,522 monthly.

For each additional person in a family, add $7,920 annually, or $660 monthly.


For Alaska:

For the Qualified Medicare Beneficiary (QMB) program (which pays your Part B monthly premium, your annual deductibles and your Part B coinsurances), your income must be at or below 100 percent of the federal poverty level, which is now:

For an individual, $13,970 annually, or $1,164 monthly.

For a couple, $18,920 annually, or $1,577 monthly.

For each additional person in a family, add $4,950 annually, or $413 monthly.

For the Specified Low-Income Medicare Beneficiary (SLMB) program (which pays your Part B monthly premium), your income must be at or below 120 percent of the federal poverty level, which is now:

For an individual, $16,764 annually, or $1,397 monthly.

For a couple, $22,704 annually, or $1,892 monthly.

For each additional person in a family, add $5,940 annually, or $495 monthly.

For the Qualifying Individual (QI) program (which pays your Part B monthly premium), your income must be at or below 135 percent of the federal poverty level, which is now:

For an individual, $18,860 annually, or $1,572 monthly.

For a couple, $25,542 annually, or $2,129 monthly.

For each additional person in a family, add $6,683 annually, or $557 monthly.


For the Qualified Disabled & Working Individuals (QDWI) program (which pays your Part A monthly premium), your income must be at or below 200 percent of the federal poverty level, which is now:

For an individual, $27,940 annually, or $2,328 monthly.

For a couple, $37,840 annually, or $3,153 monthly.

For each additional person in a family, add $9,900 annually, or $825 monthly.


For Hawaii:

For the Qualified Medicare Beneficiary (QMB) program (which pays your Part B monthly premium, your annual deductibles and your Part B coinsurances), your income must be at or below 100 percent of the federal poverty level, which is now:

For an individual, $12,860 annually, or $1,072 monthly.

For a couple, $17,410 annually, or $1,451 monthly.

For each additional person in a family, add $4,550 annually, or $379 monthly.


For the Specified Low-Income Medicare Beneficiary (SLMB) program (which pays your Part B monthly premium), your income must be at or below 120 percent of the federal poverty level, which is now:

For an individual, $15,432 annually, or $1,286 monthly.

For a couple, $20,892 annually, or $1,741 monthly.

For each additional person in a family, add $5,460 annually, or $455 monthly.


For the Qualifying Individual (QI) program (which pays your Part B monthly premium), your income must be at or below 135 percent of the federal poverty level, which is now:

For an individual, $17,361 annually, or $1,447 monthly.

For a couple, $23,504 annually, or $1,959 monthly.

For each additional person in a family, add $6,143 annually, or $512 monthly.


For the Qualified Disabled & Working Individuals (QDWI) program (which pays your Part A monthly premium), your income must be at or below 200 percent of the federal poverty level, which is now:

For an individual, $25,720 annually, or $2,143 monthly.

For a couple, $34,820 annually, or $2,902 monthly.

For each additional person in a family, add $9,100 annually, or $758 monthly.


Note on resource limits: Technically, the resource limits for all these except the Qualified Disabled & Working Individuals (QDWI) program are the same as those for the Part D Low Income Subsidy (“Extra Help”), which, strictly speaking, are $6,940 for an individual and for $10,410 a couple, respectively. However, in practice, when determining resources for Extra Help, the Social Security Administration allows an extra burial expense allowance of $1,500 for an individual or $3,000 for a couple, so these resource limits are almost always shown as $8,440 and $13,410. States, which determine MSP eligibility, do not always do this, so their limits are often shown as $6,940 for an individual and for $10,410 a couple. But States also have varying rules about what counts as resources, and some have higher limits than those shown, and some have no limits on resources at all! Again, the best advice is, if a beneficiary is ANYWHERE near the income limits, they should apply for these programs.

The resource limits for the Qualified Disabled & Working Individuals (QDWI) program are $4,000 for an individual and $6,000 for a couple, but the admonition above applies.


Originally Posted 02-17-12