How Medicaid Helps Pay Medicare Part B Premiums

Medicaid can pay your Medicare Part B premium if you meet your state's income and asset limits and are enrolled in both programs. The way this works depends on which Medicaid program you're in. Some states use a program called Medicaid Buy-In, which is designed specifically to help people pay Medicare premiums and cost-sharing. Other states use their regular Medicaid program to cover these costs. A few states do neither, so what's available to you depends on where you live.

The payment goes directly from your state's Medicaid program to Medicare, so you don't handle the money yourself. This means your Part B premium gets paid before Medicare deducts it from your Social Security check. If you're already on both Medicaid and Medicare, your caseworker can tell you whether your state covers Part B premiums and what you need to do to start.

Key Takeaways

  • Medicaid covers Medicare Part B premiums in most states, but the program name and rules vary by state.
  • You must be enrolled in both Medicaid and Medicare to have Medicaid pay your Part B premium.
  • Income limits for premium-payment programs are usually higher than limits for regular Medicaid, so you may may have access to even if you don't may have access to for other Medicaid coverage.
  • Contact your state Medicaid office or your local Area Agency on Aging to find out whether your state covers Part B premiums and what the current income limit is.

Which States Cover Part B Premiums and How Much They Pay

Nearly all states have some form of Medicaid program that covers Medicare Part B premiums, but the details differ. Some states cover the full premium amount. Others cover only part of it, leaving you responsible for the remainder. A handful of states have limited programs that cover premiums only for people in specific situations — for example, only for people who are blind or disabled, or only for people who worked in the state for a certain number of years.

The easiest way to find out what your state covers is to call your state Medicaid office directly. You can also contact your local Area Agency on Aging, which keeps current information about Medicare and Medicaid programs in your area and can tell you in one call whether your state covers Part B premiums and what the income limit is. The Eldercare Locator, run by the Administration on Aging, can connect you to your local agency by phone at 1-800-677-1116.

Income and Asset Limits for Premium-Payment Programs

Income limits for Medicaid programs that pay Medicare premiums are usually higher than the limits for regular Medicaid. This means you might not may have access to for other Medicaid benefits but still may have access to to have your Part B premium paid. The exact limit varies by state and changes each year, so you need to check with your state Medicaid office for the current number.

Most premium-payment programs count your income the same way regular Medicaid does — they look at your gross monthly income before taxes. Some states also set asset limits, meaning you can only have a certain amount of money in the bank. Again, these limits vary by state. Your state Medicaid office can tell you both the income limit and any asset limit that applies to you.

How to learn about Your State Covers Part B Premiums

Start by contacting your state Medicaid office. You can find the phone number on your state's Medicaid website, which you can locate by searching "[your state] Medicaid" online. When you call, tell them you want to know whether Medicaid in your state covers Medicare Part B premiums and what the income limit is. Have your current monthly income available so they can tell you whether you might may have access to.

If you're already on Medicaid, you can also ask your caseworker. They have access to your file and can tell you right away whether you're in a program that covers Part B premiums and what steps you need to take. If you're not yet on Medicaid but think you might may have access to for a program that covers Part B, your state Medicaid office can walk you through what information you'll need to provide.

What Happens After Medicaid Starts Paying Your Premium

Once Medicaid is approved to pay your Part B premium, the payment goes directly to Medicare each month. You won't see the money — it's handled between the two programs. Your Social Security check will not have the Part B premium deducted from it, because Medicaid is paying it instead.

You still need to stay enrolled in Medicare Part B and keep your Medicaid coverage active. If your Medicaid coverage ends for any reason, Medicare will start deducting the Part B premium from your Social Security check again. If your income changes, report it to your Medicaid caseworker right away, because a change in income can affect whether you still may have access to for the premium-payment program.

What to Do If Your State Doesn't Cover Part B Premiums

If your state doesn't have a program that covers Medicare Part B premiums, you have a few other options. If you're on a very low income, you may may have access to for Extra Help, a federal program that helps pay Medicare prescription drug costs — it doesn't cover the Part B premium itself, but it can free up money in your budget. You can learn about Extra Help by calling 1-800-MEDICARE or visiting Medicare.gov.

You can also ask your state Medicaid office whether you may have access to for regular Medicaid, which covers many other costs like doctor visits and hospital stays. Even if Medicaid doesn't pay your Part B premium, it can help with other medical expenses. Some community health centers and aging services agencies also offer financial counseling and may know about local programs that help with Medicare costs.

Frequently Asked Questions

Can Medicaid pay my Part B premium if I'm not yet on Medicare?

No. You must be enrolled in Medicare Part B first. Once you're on both Medicare and Medicaid, then Medicaid can start paying your premium. If you're approaching age 65 or are already may be able to access for Medicare, contact Medicare to enroll in Part B, then contact your state Medicaid office about having Medicaid pay the premium.

What if my income is just slightly above the limit?

Income limits are firm — if you're over the limit, you don't may have access to for that particular program. However, some states have multiple Medicaid programs with different income limits. Your state Medicaid office can tell you whether you might may have access to for a different program, or whether you may have access to for other help like Extra Help with prescription drug costs.

Do I have to report changes in my income?

Yes. If your income goes up or down, you must report it to your Medicaid caseworker. A significant increase in income could make you ineligible for the premium-payment program. A decrease might make you may be able to access for other Medicaid benefits. Reporting changes promptly keeps your coverage accurate and prevents overpayments or underpayments.

What if I move to a different state?

Medicaid programs are run by each state, so the rules change when you move. Contact your new state's Medicaid office to find out what programs are available there and whether you may have access to. Your coverage in your old state will end, and you'll need to explore in your new state.