Medicare rights experts highlight the value and impact of Medicare savings plans

New York policy experts at the Medicare Center for Rights have released a new paper focusing on helping people get Medicare Savings Plan (MSP). The paper is supported by the Western Health Policy Center, which includes case studies and policy recommendations that are done according to our National Hotline Services and are designed to help people understand and join MEDARE welfare and assistance programs, such as MSP.

MSP is the lifeline of low-income people

The MSP was established in the Medicare Disaster Coverage Act of 1988, followed by the expansion of the Russian Budget Reform Act of 1990 (OBRA), the Balanced Budget Act of 1997 (BBA), the Medicare Improvements for Patients and Providers in 2008, and the Medicaid and Medicaid Visits and Chip's Re-teaching Act of 2015.

These programs support Medicare enrollees by paying Medicare premiums and other Medicare expenses for low-income individuals; automatically include people in federal Part D low-income subsidies, also known as “additional help,” which helps pay for prescription medications; and helps individuals attend Medicare through a process called “buy”. These benefits help people afford health care and reduce state unpaid care costs.

MSP admission disorders

Standard MSP eligibility rules prevent many from getting the help they need. In most states, the income and asset thresholds are extremely low, leaving many struggling people outside the range of eligibility.

Even those who are eligible for face-to-face obstacles. Millions of people are still unregistered in strict income and asset thresholds. This could be due to a lack of information about the program and how to register, or a difficulty in navigating the well-known complex admission process. To sum up, an estimated 40% of those who are eligible missed important MSP benefits.

Unfortunately, Congress has cut some efforts by the federal government to increase their chances of obtaining MSP. The recently passed settlement bill has ceased rules aimed at simplifying the application process. The Congressional Budget Office plans nearly 1.4 million low-income Medicare insurers (more than 10% of the Medicare Medicaid population) to lose MSP coverage due to these simplified rollbacks.

Opportunities still exist

Although the Reconciliation Act stopped simplified rules and made it harder for people to enroll, it did not stop states from acting.

We urge all states to do more to improve the availability of MSPs, including raising income thresholds to qualify and removing asset barriers that may overly burden the application process. Some states are taking action: Medicare rights have successfully advocated simplifying MSP enrollment and expanding MSP eligibility in New York and other states.

We also encourage all states to make it easier for people to learn and register for MSPs through increased outreach, simplified applications and automated admissions, which are already available.

Our new paper illustrates barriers and potential solutions

The case studies in the new paper illustrate the barriers that are often faced when trying to enroll and stay in the MSP. They also highlight the crucial role Medicare and MSP play in real people’s lives. Policy recommendations come directly from our experience and can help people working to achieve these basic benefits. Common sense changes can significantly improve people's health and financial abilities.

At Medicare rights, we remain committed to informing people about Medicare and assistance programs, helping them participate in these programs, and addressing the systemic inefficiencies accumulated by the burden. Too many people have trouble paying for their health care and prescription medications. We urge policy makers to prioritize the health, well-being and financial security of millions relying on Medicare and MSPs, and adopt policies to remove barriers to care.

Read the paper, Medicare Savings Plan: Lifeline for Millions.