Help Paying Medicare Premium in New Jersey
That $202.90 Monthly Deduction
Every month, Social Security deducts the Medicare Part B premium from your parent's check before they see it. In 2026 the standard premium is $202.90 — that's $2,434.80 a year, taken before rent, groceries, or medication. On a $1,400 Social Security benefit, the net deposit drops to $1,197.
New Jersey offers three programs that make the state pay this premium instead. If your parent qualifies, Social Security stops deducting the premium, and any premiums paid after the effective date come back as a retroactive refund check.
Three Programs, One Application
All three are Medicare Savings Programs applied for through NJSave:
QMB — Pays the Part B premium and eliminates all Medicare cost-sharing. Income up to $1,330/month single ($1,803.33 couple). Assets under $9,950 ($14,910 couple).
SLMB — Pays the Part B premium only. Income up to $1,596/month single ($2,164 couple). Same asset limits.
QI — Pays the Part B premium only. Income up to $1,795.50/month single ($2,434.50 couple). Same asset limits.
Income is counted as gross Social Security minus a $20 monthly disregard. A parent receiving $1,610/month gross Social Security has countable income of $1,590 — just under the SLMB limit.
How the Premium Stops Being Deducted
After approval, New Jersey transmits buy-in data to SSA through the BENDEX system. SSA updates the payment file and stops the Part B deduction. This process takes 60 to 90 days after state approval.
During that lag, Social Security continues deducting the premium from each check. Once the update goes through, SSA sends a retroactive reimbursement check covering every premium deducted after the MSP's effective date. Your parent should not contact SSA to demand an immediate stop — the process is automated and cannot be accelerated.
Effective dates by program:
- QMB: first day of the month after approval (no retroactivity)
- SLMB and QI: can be retroactive up to three months before the application month
If your parent applied for SLMB in October and was financially eligible since July, the effective date can be July 1. The reimbursement check would cover the Part B premiums from July through whenever SSA processes the stop.
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IRMAA Surcharges Are Different
If your parent's modified adjusted gross income is above $109,000 on an individual return or $218,000 on a married-filing-jointly return, Medicare charges an Income-Related Monthly Adjustment Amount on top of the standard premium. SSA uses the most recent tax return it has, usually from two years earlier. MSPs do not cover IRMAA surcharges — but seniors at those income levels wouldn't qualify for MSPs anyway. If income has since fallen because of a qualifying life-changing event, such as stopping work, reducing work hours, or a spouse's death, your parent can ask SSA to lower the IRMAA using Form SSA-44.
What to Do This Week
Check your parent's gross monthly Social Security on their my Social Security account or their most recent SSA-1099. Subtract $20. If the result is at or below $1,795.50 and their countable liquid assets total no more than $9,950, at least one program may fit.
Apply through NJSave — online, by paper, or by calling 1-800-792-9745. One application screens for all three tiers plus Extra Help, PAAD, and other benefits.
The New Jersey Medicare Savings Programs, Extra Help & PAAD/Senior Gold Guide includes the eligibility worksheet and a premium refund timeline so you know exactly when to expect the money back.
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