📋 Medicare Savings Programs May Lower Health Care Costs (AARP Article)

[Winter2025VA]

FROM THE ARTICLE.

➡️[*** Key takeaways!

[*] For this Medicare program, apply at your state Medicaid office.

[*] Application process is complex, but you’ll save a bundle.

[*] New law puts plan to simplify applying on hold.

[*] Experts: More than 10% of people now in it could be dropped.

[*] Learn more about the 4 Medicare Savings Programs.

Perhaps the toughest part about needing help to pay your Medicare Part B premiums is knowing to ask your state for the aid.

That’s right: Medicare Savings Programs, which the federal government helps finance but state Medicaid agencies administer, assist Medicare beneficiaries with limited incomes and assets in paying for the Part B premiums, Part A premiums if you don’t qualify for premium-free Part A, deductibles, copayments and coinsurance associated with Medicare, a federal program.

You can apply any time, not just during Medicare open enrollment, Oct. 15 to Dec. 7.

USE LINK BELOW TO READ THE ARTICLE.

https://www.aarp.org/medicare/medicare-savings-program/

[GailL1 · Accepted solution]

From the linked article:

Although the federal government establishes income and asset limits for each of the programs, those numbers are a floor, not a ceiling, and states have an option to increase maximums for their residents or waive guidelines altogether.

While that is true and it is the state’s own Medicaid program that pays for this - I still wonder why.  I also wonder why people don’t just move to places that very lucrative eligibility and asset limits -

A friend of mine in another higher income and asset eligibility state said it was because they did not want to seem prejudicial to assets since EXPANDED Medicaid has NO asset limits.  

Look at this -

KFF.org - Eligibility for Medicare Savings Programs for Qualified Medicare Beneficiaries (QMBs) Time... 

Compare these numbers for the 2025 QMB Medicare Savings Program - in these close together areas - WHY is DC so much more - DC isn’t even a state so who picks up the (Medicaid) cost of this QMB program in DC?

QMB = QUALIFIED MEDICARE BENEFICIARY

———————-MONTHLY INCOME LIMIT  ——————- —- ASSET LIMIT - - - - 

LOCATION	INDIVIDUAL	COUPLE	FPL	INDIVIDUAL	COUPLE
US	$ 1304	$ 1763	100%	$ 9660	$14, 470
WASH DC	$ 3913	$ 5288	300%	NONE	NONE
MARYLAND	$ 1304	$ 1763	100%	$ 9660	$14,470
VIRGINIA	$ 1394	$ 1763	100%	$ 9660	$14, 470

So my question is WHY and then why not move to DC - for the Medicare cost savings, it could be really worth it.

There are other states as the article says that have higher income eligibility limits and NO asset limits.  I just do not understand it - can anybody explain it?

[GailL1 · Accepted solution]

Adding to my confusions of Medicaid specifically in the District of Columbia - 

It works like states and the Federal Government - with DC taking the role of a state BUT it seems that DC takes up a lot of Federal Medicaid dollars - 

Now WHO is the major employer in the District of Columbia - why the Federal government - so take a gander at this stat from KFF.org

Now would not the following be less IF the income and asset eligibility levels were lower ?  This means that the Federal Government is paying 78% of the Medicaid funding in DC and DC is covering 22% of their Medicaid cost. 

This too would be lower if their income and asset eligibility levels were closer to the that in the majority of states (the Federal income and asset eligibility levels)

All of the graphics in this post came from:

KFF.org files - Medicaid in the District of Columbia - May 2025 

Just some added data to leave us all even more confused.  

[GailL1 · Accepted solution]

From the linked article:

Although the federal government establishes income and asset limits for each of the programs, those numbers are a floor, not a ceiling, and states have an option to increase maximums for their residents or waive guidelines altogether.

While that is true and it is the state’s own Medicaid program that pays for this - I still wonder why.  I also wonder why people don’t just move to places that very lucrative eligibility and asset limits -

A friend of mine in another higher income and asset eligibility state said it was because they did not want to seem prejudicial to assets since EXPANDED Medicaid has NO asset limits.  

Look at this -

KFF.org - Eligibility for Medicare Savings Programs for Qualified Medicare Beneficiaries (QMBs) Time... 

Compare these numbers for the 2025 QMB Medicare Savings Program - in these close together areas - WHY is DC so much more - DC isn’t even a state so who picks up the (Medicaid) cost of this QMB program in DC?

QMB = QUALIFIED MEDICARE BENEFICIARY

———————-MONTHLY INCOME LIMIT  ——————- —- ASSET LIMIT - - - - 

LOCATION	INDIVIDUAL	COUPLE	FPL	INDIVIDUAL	COUPLE
US	$ 1304	$ 1763	100%	$ 9660	$14, 470
WASH DC	$ 3913	$ 5288	300%	NONE	NONE
MARYLAND	$ 1304	$ 1763	100%	$ 9660	$14,470
VIRGINIA	$ 1394	$ 1763	100%	$ 9660	$14, 470

So my question is WHY and then why not move to DC - for the Medicare cost savings, it could be really worth it.

There are other states as the article says that have higher income eligibility limits and NO asset limits.  I just do not understand it - can anybody explain it?