Action Memo: Temporary Procedure for Processing Medicare Savings Program (MSP) Applications Received from Social Security Administration

What is the Medicare Savings Program (MSP)?

The Medicare Savings Program (MSP) program consists of three programs, Qualified Medicare Beneficiaries (QMB), Specified Low-Income Medicare Beneficiaries (SLIB or SLMB) and Qualified Individuals-1 (QI-1). A person may apply for MSP when an application for the Low Income Subsidy (LIS) program is completed through the Social Security Administration (SSA). Current procedures for processing MSP applications are unchanged.

What is the Low Income Subsidy (LIS) Program?

The Low Income Subsidy (LIS) Program helps persons with Medicare Part D. These costs include their annual deductible, monthly premiums, and co-payments or coinsurance amounts for each prescription.

Beginning 01/01/2010, a person may apply for MSP when an application for LIS is completed through the SSA. These new applications that come to DHS because of the LIS application have to be treated differently by federal law. The date of application for MSP is the same date the applicant applied for LIS.