Alabama has three Medicare Savings Programs that help low-income Medicare beneficiaries pay Part A and Part B premiums, deductibles, and copays. If your income falls below certain thresholds, you may qualify for substantial savings, including having your $202.90 monthly Part B premium covered entirely. This guide covers every income limit, asset rule, and application step for 2026.
What Are Alabama's Medicare Savings Programs?
Alabama Medicaid administers four programs that help Medicare beneficiaries with costs. Each covers a different range of income and a different set of expenses.
| Program | What It Covers | Monthly Income Limit (Individual) | Monthly Income Limit (Couple) |
|---|
| QMB (Qualified Medicare Beneficiary) | Part A and B premiums, deductibles, and copays | $1,350 | $1,824 |
| SLMB (Specified Low-Income Medicare Beneficiary) | Part B premium only | $1,616 | $2,184 |
| QI (Qualifying Individual) | Part B premium only | $1,816 | $2,455 |
| QDWI (Qualified Disabled and Working Individual) | Part A premium only | $5,405 | $7,299 |
Income limits are effective February 2026 and are based on federal poverty level (FPL) guidelines. Alabama follows the standard federal thresholds. Alaska and Hawaii use higher figures.
QMB: The Most Comprehensive Coverage
The Qualified Medicare Beneficiary program covers the widest range of costs. If you qualify, Alabama Medicaid pays your Part A premium (if applicable), your Part B premium of $202.90 per month, and your Part A and Part B deductibles, copays, and coinsurance.
For 2026, the QMB income threshold is set at 100% of the federal poverty level. Providers are not allowed to bill QMB members for Medicare cost-sharing, which can translate to hundreds or even thousands of dollars saved annually.
QMB income limits:
- Individual: $1,350 per month ($16,200 per year)
- Married couple: $1,824 per month ($21,888 per year)
SLMB: Part B Premium Relief
The Specified Low-Income Medicare Beneficiary program covers your Part B premium only, but that alone saves you $2,434.80 per year in 2026. Income must fall between 100% and 120% FPL.
SLMB income limits:
- Individual: $1,616 per month ($19,392 per year)
- Married couple: $2,184 per month ($26,208 per year)
QI: Qualifying Individual Program
The Qualifying Individual program also covers only the Part B premium. Income must fall between 120% and 135% FPL. Funding for QI is limited and allocated on a first-come, first-served basis each year.
QI income limits:
- Individual: $1,816 per month ($21,792 per year)
- Married couple: $2,455 per month ($29,460 per year)
QDWI: Disabled Working Individuals
The Qualified Disabled and Working Individual program targets people under 65 who had Medicare due to disability, returned to work, and lost Medicare as a result. It covers the Part A premium only.
QDWI income limits:
- Individual: $5,405 per month
- Married couple: $7,299 per month
- Resource limits: $4,000 (individual) / $6,000 (couple)
Asset Limits in Alabama
Alabama has eliminated the asset test for QMB, SLMB, and QI programs entirely. You do not need to disclose or meet any asset or resource threshold to qualify for these three programs in Alabama. This is a significant advantage compared to many other states where you would need to keep resources below $9,950 (individual) or $14,910 (couple).
The QDWI program still applies resource limits of $4,000 for individuals and $6,000 for couples.
Extra Help for Medicare Part D Drug Costs
Extra Help (also called the Low-Income Subsidy, or LIS) is a separate federal program administered by the Social Security Administration. It reduces your Part D prescription drug costs significantly.
| Benefit | 2026 Amount |
|---|
| Part D premium | Reduced to $0 for benchmark plans |
| Generic drug copay | $1.55 to $5.10 |
| Brand-name drug copay | $3.90 to $12.65 |
| Out-of-pocket cap | Free drugs after $2,100 in spending |
Extra Help income limits for Alabama (2026):
- Individual: $23,475 per year ($1,956 per month)
- Married couple: $31,725 per year ($2,644 per month)
Extra Help resource limits:
- Individual: $18,090
- Married couple: $36,100
If you qualify for QMB, SLMB, or QI, you automatically qualify for Extra Help. You do not need to apply separately.
2026 Medicare Part A and Part B Costs
Understanding what you could save requires knowing what Medicare actually costs in 2026.
| Cost Type | 2026 Amount |
|---|
| Part B premium (standard) | $202.90 per month |
| Part B annual deductible | $283 |
| Part A premium (if you buy in, fewer than 30 quarters) | $565 per month |
| Part A premium (30 to 39 quarters) | $311 per month |
| Part A inpatient deductible | $1,736 per benefit period |
| Part A daily coinsurance (days 61 to 90) | $434 per day |
Most Medicare beneficiaries in Alabama do not pay a Part A premium because they or their spouse worked and paid Medicare taxes for at least 40 quarters (10 years). If you paid into Medicare for fewer than 40 quarters, programs like QMB can cover that premium too.
Who Is Eligible for Medicare in Alabama?
To qualify for Medicare, you must meet one of the following criteria:
- Age 65 or older and a U.S. citizen or lawful permanent resident for at least 5 consecutive years
- Under 65 with a qualifying disability and receiving Social Security Disability Insurance (SSDI) for 24 months
- Any age with End-Stage Renal Disease (ESRD)
- Any age with ALS (amyotrophic lateral sclerosis), starting the first month you receive disability benefits
Meeting the Medicare eligibility criteria does not automatically qualify you for Alabama's Medicare Savings Programs. You must apply separately for MSP benefits through Alabama Medicaid.
Alabama Medicare Income Limits Compared to Neighbors
| State | QMB Individual Limit | SLMB Individual Limit | QI Individual Limit | Asset Test Eliminated? |
|---|
| Alabama | $1,350 | $1,616 | $1,816 | Yes (QMB, SLMB, QI) |
| Georgia | $1,350 | $1,616 | $1,816 | No |
| Mississippi | $1,350 | $1,616 | $1,816 | Yes |
| Tennessee | $1,350 | $1,616 | $1,816 | No |
| Florida | $1,350 | $1,616 | $1,816 | No |
Most states follow the same federal income limits. Alabama's advantage is in the asset test elimination, which makes it easier to qualify.
How to Apply for Alabama Medicare Savings Programs
Step 1: Confirm you have Medicare.
You must have Medicare Part A or be enrolled in or eligible for Part B to apply for MSPs.
Step 2: Gather required documents.
- Medicare card
- Photo ID or Social Security card
- Proof of income (Social Security award letter, pay stubs, pension statements)
- Proof of residency (utility bill or lease agreement)
- Since Alabama eliminated the asset test for QMB, SLMB, and QI, you do not need to list savings or investments
Step 3: Submit an application.
You have three options:
- Online: Apply through Alabama Medicaid's online portal at medicaid.alabama.gov
- By mail or in person: Contact your local Alabama Medicaid county office and request the Medicare Buy-In application
- By phone: Call Alabama Medicaid's Medicare Buy-In unit at (334) 242-5268 or (334) 353-5773
Step 4: Complete an interview if requested.
Alabama Medicaid may schedule a brief phone or in-person interview to verify your information.
Step 5: Await determination.
Processing typically takes 30 to 45 days. If approved, you may receive benefits retroactively to the month you applied.
Step 6: Apply for Extra Help separately if needed.
If your income is above the MSP thresholds but below the Extra Help limits, apply directly with the Social Security Administration at ssa.gov or call 1-800-772-1213.
Free Help Applying in Alabama
The Alabama State Health Insurance Assistance Program (SHIP) offers free, unbiased counseling on Medicare coverage, costs, and savings programs. SHIP counselors can help you:
- Determine which MSP you qualify for
- Complete applications
- Compare Medicare Advantage and Part D plans
- Understand billing errors or denials
SHIP contact: 1-800-243-5463
SHIP counselors do not sell insurance and have no financial interest in your enrollment decisions.
Income That Does and Does Not Count
Alabama Medicaid uses gross income for MSP eligibility, meaning income before taxes are deducted. The following count as income:
- Social Security retirement or disability benefits (gross, before Medicare premium deduction)
- Wages and self-employment income
- Pensions and annuities
- Rental income
- Interest and dividends
The following generally do not count:
- SNAP benefits
- LIHEAP assistance
- Home energy assistance
- Irregular gifts or one-time payments below a certain threshold
Social Security gives you a standard $20 income disregard each month when calculating MSP eligibility. That is why the income limits are slightly above the FPL benchmark. For example, 100% FPL for a single person in 2026 is $1,330 per month, and after the $20 disregard you get the $1,350 QMB limit.
Not Sure If You Qualify?
Use the free Benefits Navigator screener at benefitsusa.org/screener to check your eligibility for Medicare Savings Programs, Extra Help, and other Alabama benefits in a few minutes. You can also visit our Alabama benefits page for a full list of programs available to state residents.
Frequently Asked Questions
What is the income limit for Medicare savings programs in Alabama in 2026?
The income limits for Alabama's Medicare Savings Programs in 2026 are $1,350 per month for individuals under QMB, $1,616 per month for SLMB, and $1,816 per month for QI. Couples have limits of $1,824, $2,184, and $2,455 per month respectively.
Does Alabama have an asset test for Medicare Savings Programs?
No. Alabama has eliminated the asset test for QMB, SLMB, and QI programs. You do not need to meet any savings or resource limit to qualify for these three programs.
How do I apply for Medicare Savings Programs in Alabama?
You apply through Alabama Medicaid. You can apply online at medicaid.alabama.gov, call the Medicare Buy-In unit at (334) 242-5268, or visit your local Alabama Medicaid county office. Free help is available from SHIP at 1-800-243-5463.
What is the difference between QMB, SLMB, and QI in Alabama?
QMB is the most comprehensive, covering Part A and Part B premiums plus deductibles and copays. SLMB covers only the Part B premium, and QI also covers only the Part B premium but for a slightly higher income range. All three programs eliminate the asset test in Alabama.
Can I get Extra Help if I qualify for QMB in Alabama?
Yes. If you qualify for any of Alabama's Medicare Savings Programs, you automatically qualify for Extra Help with Part D drug costs. You do not need to submit a separate application.
What is the 2026 Medicare Part B premium in Alabama?
The standard Medicare Part B premium is $202.90 per month in 2026. Alabama's QMB, SLMB, and QI programs pay this premium on your behalf if you qualify.
What counts as income for Medicare Savings Program eligibility?
Gross income counts, including Social Security benefits before deductions, wages, pensions, and rental income. Each month, Medicaid applies a $20 income disregard before comparing your income to the program limit.
Does Medicare cover everyone in Alabama over 65?
Medicare is available to Alabama residents who are 65 or older and who are U.S. citizens or lawful permanent residents who have lived in the country for at least 5 consecutive years. You or your spouse must also have paid into Medicare through work, or you will need to pay a premium for Part A.
