Medicare Savings Programs

Medicare Savings Programs, or MSPs are Medicaid subsidies that help low-income seniors
pay forthings like co-payment, deductibles and premiums for Medicare parts A and B. The
program specifics vary by state, but generally there are three different subsidy levels.

You usually must be at the poverty level to qualify and receive the largest subsidy.

The second level is a specified low-income medicare beneficiaries and they receive a
moderate subsidy.

And the third level, qualified individuals, receive the smallest subsidy.

If you qualify for a Medicare Savings Program but expect your income levels to increase and
bump you out of the program, then you might want to carry supplemental insurance along with
your MSP benefits. The reason for this is because medicare supplement premiums will often
be more expensive the longer wait to purchase a plan and because you can be denied based on
a pre-existing condition if you do not purchase a Medigap plan during your open enrollment period.
If you purchase an inexpensive Medigap policy like Plan A, then that can keep you enrolled in
Medigap before you lose your MSP benefits.

Remember that each state carries a slightly different version of Medicare Saving Program with
different income requirements and benefits, so make sure you contact the office in your state
administers those programs.

Sincerely,
Tom Caress
760-413-9749
medicareplansdirect.net