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Medicare Savings Programs

4.2.3.3 Income (Archive)

Medicare Savings Programs (MSP) follow many of the same income eligibility policies as Medical Assistance for People Who Are Age 65 or Older and People Who Are Blind or Have a Disability (MA-ABD). Specific MSP income policies and links to the relevant MA-ABD income policies are included.

Income Limit

To be eligible for a MSP a person’s income must be less than or equal to the applicable federal poverty guidelines income limit. The income limit for an MSP is determined by household composition and family size. See MSP Household Composition and Family Size policy for more information about determining household composition. Income deeming rules determine whose income counts for a person. See the MA-ABD Income Deeming policy for more information about whose income’s count.

MSP income limits are:

  • 100% FPG Qualified Medicare Beneficiary (QMB)

  • 120% FPG Service Limited Medicare Beneficiary (SLMB)

  • 135% FPG Qualified Individual (QI)

  • 200% FPG Qualified Working Disabled (QWD)

See Minnesota Insurance Affordability Programs Income and Asset Guidelines (DHS-3461A) for information about income limits based on the household size.

Income Policies

For MSPs, all other factors in income eligibility follow MA-ABD except:

  • A standard deduction of $20 is subtracted from a person’s income. The deduction is first applied to unearned income. When a person has less than $20 of unearned income, the remainder of the deduction comes from earned income. An eligible household receives only one $20 exclusion per month.

  • Aid and Attendance benefits and Allowances for Unusual Medical Expenses from the Veteran’s Administration are excluded income.

See the following policies for more information.

  1. MA-ABD Income Methodology

  2. MA-ABD Countable Income

  3. MA-ABD Income Deeming

  4. MA-ABD Sponsor Income Deeming

  5. MA-ABD Disregards and Deductions

  6. MA-ABD Excluded Income

Legal Citations

Minnesota Statutes, section 256B.056, subdivision 1a

Minnesota Statutes, section 256B.056, subdivision 4

Minnesota Statutes, section 256B.056, subdivision 5

Minnesota Statutes, section 256B.057, subdivision 3

Minnesota Statutes, section 256B.057, subdivision 4

United States Code, title 42, section 1382a

United States Code, title 42, section 1396d(p)

United States Code, title 42, section 1396d(s)

Published:  June 1, 2016

Archived: August 1, 2017