Medicare Savings Programs Asset Limits and Eligibility

Medicare Savings Programs are an important financial lifeline for low-income Medicare beneficiaries, helping cover premiums, deductibles, copayments, and coinsurance. Yet despite the value of these programs, millions of eligible individuals remain unenrolled. A recent AARP Public Policy Institute report found that most people who appear eligible based on income hold only minimal assets, and those assets generally do not change much over time. That finding raises an important policy question: whether current asset-testing rules are doing more to burden applicants and states than to protect program integrity. The report suggests that simplifying or eliminating asset tests could reduce red tape, improve enrollment, and make healthcare more affordable for older adults and people with disabilities who need assistance the most. 

Read the full report. 

Key Points

• Medicare Savings Programs reduce out-of-pocket costs for low-income Medicare enrollees and can save beneficiaries more than $2,000 annually.
• More than 10 million people rely on MSPs, but as many as 6 million eligible individuals may still not be enrolled.
• The study found that about 80% of income-eligible individuals held assets below federal MSP asset limits.
• Most assets were modest checking or savings balances, with relatively few individuals holding significant stocks, retirement accounts, or business equity.
• Life insurance verification was identified as a particularly burdensome part of the eligibility process for both applicants and state agencies.
• Asset levels for most eligible individuals remained fairly stable over time, suggesting annual re-verification may often be unnecessary.
• The report recommends that states consider eliminating asset tests, streamlining renewal requirements, or disregarding certain assets such as life insurance.
• Simplifying these rules could expand access to healthcare, reduce bureaucratic delay, and help older adults remain in their communities longer.

Citation: Oliver, Tobey, Wenjia Zhu, Erin Weir Lakhmani, and Matt Niedzwiecki. Medicare Savings Programs: Most Who Are Eligible Hold Few Assets. Washington, DC: AARP Public Policy Institute, April 9, 3036. 

Note: This is article was published by AARP by byTobey Oliver, AARP Public Policy Institute, Wenjia Zhu, Mathematica, Erin Weir Lakhmani, Mathematica&Matt Niedzwiecki, Mathematica, covering Medicare for AARP, and brought to you by the RJ Fichera Law Firm, where our mission is to provide trusted, professional legal services and strategic advice to assist our clients in their personal and business matters. Our firm is committed to delivering efficient and cost-effective legal services focusing on communication, responsiveness, and attention to detail. For more information about our services, contact us today !

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