Medicare Savings Programs

You will learn in the next section that health care costs, including Medicare premiums, are used as deductions from a person’s gross income when determining the client’s obligation.

When an MSP is paying for the Medicare premium the premium amount cannot be used as a deduction, which results in a higher obligation amount. This means that either way the client will incur the cost of the Medicare premium amount whether using the premium amount as a deduction and paying the premium themselves or not using the premium as a deduction and having a higher obligation.

Because the QMB program provides additional benefits beyond paying the Medicare premium – it pays Medicare co-insurance and deductibles and qualifies the client for the Medicare Part D low-income subsidy – it is to the client’s advantage to be on the QMB program. Consult with your clients to determine if an MSP is right for them.

SLMB covers the Part B premium amount and qualifies the client for the Medicare Part D low-income subsidy of Medicare. MA-LTC clients enrolled in SLMB will have an increased obligation because the premium will not be deducted as part of the income calculation.