Medicare Savings Programs in Alabama: 2026 income limits and how to apply

Who qualifies

You can get a Medicare Savings Program (MSP) in Alabama if you:

• Have Medicare Part A (or can get it),
• Live in Alabama, and
• Have monthly income under the limit for one of the three programs.

The Alabama Medicaid Agency sets these income limits each February, when the new federal poverty guidelines come out.

If you are married: If you and your spouse both have Medicare, your combined income must be under the couple limit. If only you have Medicare, your own income must be under the one-person limit, and your combined income must also be under the couple limit.

Back to the page menu

What counts and what does not

Savings and property: not counted

This is where Alabama is more generous than many states. Alabama's Medicaid rules say that all of your resources, and all of your spouse's resources, are excluded for QMB, SLMB and QI-1. That means bank accounts, CDs, stocks, a second car, land or a life insurance policy will not stop you from getting help. You do not need to list a dollar limit for savings, because there is none.

Income: some is not counted

Alabama looks at your monthly income, such as Social Security, pensions and wages. But its rules for these programs are kinder than the rules for SSI:

• Interest and dividends are not counted. Interest from a savings account or dividends from stocks do not count as income.
• Help with food or shelter from others is not counted. If a family member pays your rent or buys groceries, that does not count against you.
• Uneven income can be averaged. If your income goes up and down, Medicaid may average the past six months and project it over twelve months.

The income limits in the table already allow for the $20 of monthly income that is not counted. If you work, part of your earnings is not counted either. Apply even if you think you are a little over.

Back to the page menu

What each program pays

QMB (Qualified Medicare Beneficiary)

• Pays your Part B premium ($202.90 a month in 2026).
• Pays your Medicare deductibles, such as the Part A hospital deductible and the Part B deductible.
• May pay your Part A premium if you have to pay one.
• Doctors and hospitals that take Medicaid agree not to bill you the 20% coinsurance after Medicare pays.
• You get a Medicaid card to show your providers.
• QMB starts the month after Medicaid approves you. It does not pay for months before that.

SLMB (Specified Low Income Medicare Beneficiary)

• Pays your Part B premium only.
• Can start up to three months before the month you apply, if you qualified in those months.
• You do not get a Medicaid card.

QI-1 (Qualifying Individual)

• Pays your Part B premium only.
• Can also start up to three months back.
• Money for QI-1 is limited. When the year's funds run out, no more applications are approved, so apply early.
• You do not get a Medicaid card.

Extra Help comes with it

If you get any of these three programs, you also qualify for Extra Help with your Medicare Part D drug costs. You do not need a separate application.

Back to the page menu

How to apply

1. Get Form 211. This is the Medicare Savings Program application. It is on the Applicant Forms page at medicaid.alabama.gov, or you can call the Recipient Call Center at 1-800-362-1504 and ask for one. Form 211 is not an application for full Medicaid. If you also want full Medicaid, use Form 204/205.
2. Fill it out and sign it. Gather proof of your income, such as your Social Security award letter, pension statements and pay stubs. Have your Medicare card handy. Medicaid may ask you for more papers before it can decide.
3. Send it in. You can email it to [email protected], mail it to Medicaid, PO Box 5624, Montgomery, AL 36103-5624, or take it to the Medicaid district office for your county. Alabama has 11 district offices; the list is on the Applicant Contacts page.
4. Wait for a letter. It may take several weeks. You will get a letter at your mailing address whether you are approved or denied. Call 1-800-362-1504 to check on it.

Back to the page menu

After you apply

• Renewals. Medicaid checks your eligibility at least once every 12 months. Answer any renewal letter quickly so your help does not stop.
• Report changes. Tell Medicaid if your address, income or marriage status changes. Form 295 is the change report form. You must also tell Medicaid if you get other health insurance.
• If you are denied. You can ask for a fair hearing. Medicaid must receive your request within 60 days of the date the notice was mailed. You can send it to your district office, email [email protected], or call the Fair Hearings Coordinator at 334-353-5210 (not by voicemail). If your help is being stopped and Medicaid receives your request within 10 days of the notice, your benefits may continue until the hearing.

Back to the page menu

Things people miss

• Not applying because of savings. In Alabama, savings do not matter for these programs.
• Waiting too long for QI-1. Funding is limited each year.
• Not asking for back months. SLMB and QI-1 can cover up to three months before you apply. QMB cannot, so do not delay a QMB application.
• Forgetting Extra Help. It comes automatically with any MSP and can save you a lot on prescriptions.

Back to the page menu

Free help

The State Health Insurance Assistance Program (SHIP), run by the Alabama Department of Senior Services, gives free help with Medicare Savings Programs and drug plans. Call 1-800-AGE-LINE (1-800-243-5463) or 334-242-5743.

For other help in the state, see all benefits in Alabama. You can also read about Medicare Part B and Medicare.

Phone numbers: Free help lines for Alabama agencies

Check what you may qualify for