Tennessee QI Program: First-Come First-Served Funding and How Annual Allocation Works
The Qualifying Individual program — the highest-income tier of Tennessee's Medicare Savings Programs — works differently from QMB and SLMB in one critical way: it runs on capped annual federal funding. Enrollment is first-come, first-served, subject to available funds.
This creates questions families rarely get answered: Can the money run out? What happens at renewal? Should you rush to apply?
How QI Funding Works
Congress allocates a fixed amount of QI funding to each state annually. Tennessee receives its share and distributes it through TennCare as Part B premium payments for qualifying beneficiaries.
Unlike QMB and SLMB — which are open-ended entitlements where every eligible person must be enrolled — QI approval is contingent on available federal dollars. The program has a ceiling.
QI approval depends on available federal funding, and applications are processed first-come, first-served. Families should not assume funds will remain available throughout the year.
Priority Redetermination for Current Enrollees
Federal law gives priority to beneficiaries already enrolled in QI during the preceding calendar year. TennCare gives these enrollees priority at redetermination.
This gives current QI recipients priority during redetermination, subject to continued eligibility and available funding.
New applicants remain subject to available federal funds and the first-come, first-served rule.
QI Eligibility Rules
QI covers the $202.90 monthly Part B premium — the same benefit as SLMB. It does not cover deductibles, copays, or coinsurance.
Income limits (after the $20 unearned income disregard):
- Individual: up to $1,816/month (121–135% FPL)
- Couple: up to $2,455/month
Asset limits: $9,950 individual, $14,910 couple.
One additional restriction: a person receiving Medicaid under any other TennCare category is ineligible for QI. This means someone on full TennCare Medicaid or CHOICES already has their premium covered through that pathway and does not need QI.
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Should You Apply Early in the Year?
Because QI funding is capped and applications are first-come, first-served, apply as soon as eligibility is clear. Applications are processed through TennCare Connect at tenncareconnect.tn.gov or by calling 1-855-259-0701.
That said, earlier applications have one concrete benefit unrelated to funding: SLMB and QI coverage can be applied retroactively up to three months before the application month. Applying sooner captures more retroactive premium reimbursement.
What If Your Parent Is Between SLMB and QI?
If income falls in the SLMB range (up to $1,616/month individual), apply for that instead. SLMB is an entitlement with no funding cap — there is zero risk of being told funding ran out. The benefit is identical: the Part B premium is paid.
QI fills the gap for people whose income exceeds the SLMB ceiling but is still under 135% FPL. For those families, QI is the only option for premium relief, and Tennessee's track record of having funding available means the application is worth filing without delay.
The Tennessee Medicare Savings Programs & Extra Help Guide breaks down all three tiers with income worksheets, so you can determine whether your parent falls into QMB, SLMB, or QI before navigating TennCare Connect.
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