Medicare Savings Programs Asset Limits and Eligibility

More than 10 million low-income Americans rely on Medicare Savings Programs (MSPs) to help cover their Medicare out-of-pocket costs. However, despite the substantial financial help MSPs can provide, as many as 6 million people are likely eligible for but are not enrolled in one. One factor in this enrollment gap could be the administrative burden of proving eligibility. To qualify for an MSP, most individuals must demonstrate that their income and assets fall below certain limits. To better understand who is affected by asset limits, AARP Public Policy Institute collaborated with Mathematica to analyze the types and values of assets held by individuals whose income appears eligible for MSPs and how those assets change over time. The findings suggest that policymakers should consider eliminating the asset test or at least streamlining and simplifying asset tests, including disregarding categories of assets from consideration. Read the full report. 

Key Takeaways 

• Medicare Savings Programs help the lowest-income Medicare enrollees afford care.  
• Most individuals who are income-eligible for MSPs hold few assets of low value which remain stable over time. 
• To ease enrollment barriers, states could streamline or eliminate MSP asset tests without significantly increasing the eligibility pool.