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Medicare Savings Program budgeting

If your income seems above Medicare Savings Program (MSP) income and asset guidelines in your state, you should still apply. You may qualify for an MSP because certain income and assets may not be counted when determining your eligibility.

Note: How your income and assets are counted to determine eligibility varies from state to state. Call your State Health Insurance Assistance Program (SHIP) to find out if you are eligible for an MSP in your state.

In all states, the following income is not counted:

  • The first $20 of all income
  • The first $65 of your monthly wages
  • Half of your monthly wages (after the $65 is deducted)
  • Food stamps (Supplemental Nutrition Assistance Program (SNAP) support)

In addition to the above, some states may disregard or exclude other income, such as the cost of certain health insurance premiums (like Part D premiums). Also, in some states the eligibility limits may be higher if there are more than two people in your household.

In all states, the following assets are not counted:

  • Your primary house
  • One car
  • Household goods and wedding/engagement rings
  • Burial spaces
  • Burials funds up to $1,500 per person
  • Life insurance with a cash value of less than $1,500

Many states do not count other types of assets. In addition, some states have no asset test. Call your SHIP to learn more.