Tennessee Medicare Savings Program: Eligibility, Income Limits and How to Apply

Every month, Social Security withholds $202.90 from your parent's check for the Medicare Part B premium. Tennessee's Medicare Savings Programs can stop that deduction entirely and, depending on which tier your parent qualifies for, cover deductibles and copays too. An estimated 40,000 to 55,000 eligible Tennesseans aren't enrolled, often because the rules look more complicated than they actually are.

Three Tiers, One Application

Tennessee runs three Medicare Savings Programs through the Division of TennCare. All three pay the Part B premium. The difference is how much additional coverage each tier provides.

Qualified Medicare Beneficiary (QMB) covers the most. TennCare pays the Part B premium, the Part B deductible ($283 per year), all Medicare copays and coinsurance, and the Part A hospital deductible ($1,736 per benefit period). QMB also gives your parent federal balance-billing protection — providers cannot bill a QMB enrollee for Medicare cost-sharing, period.

Specified Low-Income Medicare Beneficiary (SLMB) pays the Part B premium only. Your parent stays responsible for deductibles and coinsurance.

Qualifying Individual (QI) also pays the Part B premium, but funding comes from a capped federal block grant awarded first-come, first-served each year. Current enrollees get priority for the following year.

All three tiers automatically qualify your parent for Part D Extra Help, which caps covered-drug copays at no more than $12.65 for brand-name drugs and reduces generic copays.

2026 Income and Asset Limits

The published 2026 gross monthly income limits below already reflect TennCare's $20 monthly unearned income disregard:

Asset limits are the same across all three tiers: $9,950 for an individual, $14,910 for a couple. Tennessee counts bank accounts, CDs, stocks, and accessible retirement accounts. It excludes the primary home (regardless of value), one vehicle, household goods, and up to $1,500 per person in designated burial funds.

How to Apply

TennCare accepts applications through four channels:

• Online at tenncareconnect.tn.gov — the fastest route
• Phone at 1-855-259-0701 (TTY: 1-800-848-0298)
• Mail or fax — send the completed paper application to TennCare Connect, P.O. Box 305240, Nashville, TN 37230-5240 (fax: 1-855-315-0669)
• In person at any county Department of Human Services office

If you're applying on behalf of a parent, complete the Authorized Representative section on the application (Step 1). Without it, TennCare caseworkers cannot discuss the case with you. TennCare's representative authorization is separate from anything filed with Social Security.

What Happens After Approval

Processing typically takes 20 to 40 days. Once approved, TennCare sends a buy-in record to CMS, which directs Social Security to stop withholding the Part B premium. That inter-agency update takes 60 to 90 days, so your parent will likely see a few more deductions before receiving a lump-sum refund.

QMB coverage starts on the first of the month after approval — no retroactive coverage. SLMB and QI can be retroactive up to three months before the application month if your parent was eligible during that period.

Next Steps

Your parent's eligibility depends on exact income and asset figures. The Tennessee Medicare Savings Programs & Extra Help Guide walks through the calculation with Tennessee-specific worksheets, explains the buy-in timeline so nothing catches you off guard, and covers renewals and appeals if TennCare asks for more information.

Tennessee SHIP counselors (1-877-801-0044) provide free, unbiased help — they don't sell insurance and don't charge for their time.

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