New Jersey Medicare Savings Program
That Part B Premium Eats Into a Fixed Income
Every month, Medicare deducts $202.90 from your parent's Social Security check for the Part B premium. On a $1,400 monthly benefit, that's nearly 15% gone before rent, food, or medication. New Jersey's Medicare Savings Programs exist to pay that premium — and for the lowest-income beneficiaries, to eliminate virtually all Medicare cost-sharing.
The programs are real. They save thousands of dollars a year. And roughly 2 million people nationally who qualify never apply.
Three Tiers of Help
New Jersey runs three Medicare Savings Programs, each covering more than the last:
QMB (Qualified Medicare Beneficiary) pays the Part B premium, Part A premium (if applicable), and all Medicare deductibles, coinsurance, and copays. Providers are legally barred from billing QMB members for cost-sharing. For 2026, income must be at or below $1,330/month for a single person ($1,803.33 for a couple), with assets no higher than $9,950 ($14,910 for couples).
SLMB (Specified Low-Income Medicare Beneficiary) pays the Part B premium only. Income limit: $1,596/month single ($2,164 couple). Same asset limits as QMB.
QI (Qualifying Individual) also pays the Part B premium, but funding comes from a capped federal block grant — apply early in the calendar year. Income limit: $1,795.50/month single ($2,434.50 couple). Same asset limits.
All three programs use gross income minus a $20/month unearned income disregard. If your parent's Social Security is $1,340/month, their countable income is $1,320 — under the QMB threshold.
What Counts as Assets
The $9,950/$14,910 limits apply to liquid resources: bank accounts, CDs, stocks, mutual funds, and cash-value life insurance above $1,500 face value. IRAs and 401(k)s count unless they're in periodic payout mode.
What doesn't count: the family home (regardless of equity), one car, irrevocable burial trusts, and up to $1,500 set aside for burial costs. There's no five-year lookback and no penalty for transferring assets — this is not Medicaid long-term care.
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How to Apply in New Jersey
The application goes through NJSave, the state's combined benefits portal run by the Division of Aging Services. One application screens your parent for MSPs, Extra Help, PAAD, Senior Gold, and Lifeline utility assistance simultaneously.
You can apply online, by paper (Form AP-2 mailed to PO Box 637, Trenton), or by calling 1-800-792-9745. An adult child can be designated as an authorized representative on the form.
Documents needed: Medicare card, Social Security award letter, 30–60 days of bank statements, pension statements, and proof of NJ residency. The state has a 45-day processing standard.
Automatic Extra Help
Every MSP approval — QMB, SLMB, or QI — automatically qualifies your parent for full Extra Help on Part D prescription drugs. No separate application needed. That eliminates the Part D deductible and caps drug copays at $5.10 generic and $12.65 brand-name in 2026.
The Estate Recovery Question
This is the fear that keeps people from applying: will the state take the house? For Medicare Savings Programs alone, the answer is no. Federal law explicitly exempts MSP cost-sharing from Medicaid estate recovery. If your parent's only Medicaid-related assistance is QMB, SLMB, or QI, New Jersey does not seek estate recovery for those MSP benefits. Other Medicaid coverage is subject to separate recovery rules.
What to Do This Week
Check your parent's gross Social Security on their SSA-1099 or my Social Security account. Subtract $20. If the result falls under $1,795.50 for a single person and their bank balances are under $9,950, at least one tier of MSP likely applies.
The New Jersey Medicare Savings Programs, Extra Help & PAAD/Senior Gold Guide walks through every step — the eligibility worksheet, the NJSave document checklist, what changes once approved, billing protections, and renewals — so nothing falls through the cracks.
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Download the New Jersey — Medicare Savings Program Eligibility Checklist — a printable guide with checklists, scripts, and action plans you can start using today.