Medicare costing too much? A Medicare Savings Program can pay your Part B premium ($202.90/month in 2026)
About your state: this guide follows Illinois rules and figures. In Missouri and Texas the equivalent programs have different names, income limits and application steps — call (636) 552-4229 and we will check your state's rules for free.
Every month, Social Security deducts $202.90 (in 2026) from your benefit check to pay for Medicare Part B. For someone living on a few hundred to a little over a thousand dollars a month, that is a lot. Many older adults in Chicago qualify to have the state pay this premium for them but have never applied.
The program is the Medicare Savings Program (MSP), administered by the Illinois Department of Healthcare and Family Services (HFS). It has three levels:
2026 monthly income limits
| Level | What it pays | Individual | Married couple |
|---|---|---|---|
| QMB | Part B premium + Part A premium (if any) + all Medicare deductibles and copays | under $1,350 | under $1,824 |
| SLMB | Part B premium | under $1,616 | under $2,184 |
| QI | Part B premium | under $1,816 | under $2,455 |
Resources (cash, bank accounts, stocks): under $9,950 (individual) / $14,910 (couple). Your home, one car, household goods and a prepaid burial plan do not count.
The income limits above already include the $20/month general disregard. Other income is also excluded, so if you are only slightly over, apply anyway.
Approval for MSP = automatic Extra Help (Low-Income Subsidy) for Part D drugs: no monthly drug-plan premium, copays of a few dollars per prescription, and no Part D late-enrollment penalty.
Example
Mrs. Lan, 70, lives alone in Uptown on $1,250/month in Social Security and has $6,000 in the bank. She qualifies for QMB: the state pays her $202.90 Part B premium each month (her check rises to $1,452.90), she pays no copays or deductibles at the doctor or hospital, and her prescriptions are covered by Extra Help. She saves more than $2,400 a year on Part B alone.
How to apply
- Apply through ABE (abe.illinois.gov) — choose Medicare Savings Program / Medical, or call 1-800-843-6154, or file a paper application at a DHS office (FCRC).
- Documents: Medicare card, ID, SSA Benefit Verification Letter, pension statements, bank statements, green card/proof of citizenship.
- Processing takes a few weeks. Once approved, Social Security stops deducting the Part B premium and may refund premiums back to the month you applied (QMB starts the month after approval).
- Renew once a year.
Not on Medicare yet?
People turning 65 (or on SSDI for 24 months) must enroll on time: from 3 months before to 3 months after the month of your 65th birthday. Enrolling late can mean a lifelong Part B penalty. People with fewer than 40 work quarters can still buy Part A and Part B — and if income is low, QMB pays the Part A premium too. We help with Medicare enrollment and the MSP application at the same time.
How An Tax & Benefits helps
We check which level you fit, prepare the documents, file through ABE, follow up until Social Security stops the deduction and remind you of the annual renewal. Free of charge.
Want us to handle this application with you?
Call (636) 552-4229 or leave your number and a Vietnamese- or English-speaking staff member will call back within 1 business day. Benefits applications are free; tax returns are quoted up front.
An Tax & Benefits / Tam An Care LLC is a private business, not a government agency and not an insurance agency, and is not affiliated with the Social Security Administration (SSA), Medicare, the IRS or any agency of the states of Illinois, Missouri or Texas. Benefits application help is free for everyone and never conditioned on buying a service; outcomes are not guaranteed — final decisions rest with the agencies. Tax preparation is performed by an IRS PTIN holder at 4422 N Ravenswood Ave, Office 8, Chicago; prices are posted at the office. Information on this website is general and is not legal or tax advice.