Alabama is one of only a few states that has waived the asset/resource test for Medicare Savings Programs (MSPs) — meaning your savings, investments, and property don't disqualify you from qualifying. This is a significant but underused benefit that helps thousands more Alabamians qualify for Medicare premium assistance than would in most other states.
The federal MSP asset test (in most states):
In most states, MSP eligibility requires:
- Income at or below program-specific limits
- AND resources at or below limits: ~$9,660 single / $14,470 married (2026)
Resources counted (in most states):
- Bank accounts (checking, savings, CDs)
- Stocks, bonds, mutual funds
- Retirement accounts (in some states)
- Cash on hand
- Real estate other than primary home
Resources NOT counted (in most states):
- Primary home (any value)
- One vehicle
- Burial expenses up to $1,500
- Personal belongings
- Household goods
Most states deny MSP eligibility to people who own their home + a car + have $20,000-$50,000 in savings. Even modest middle-class retirees fail the asset test.
Alabama's waived asset test:
Alabama has waived the federal asset test for MSP eligibility. Only your income matters in Alabama. This means:
- A retired Alabama couple with $200,000 in savings, a paid-off home, and modest pension income may still qualify for MSP
- Investment accounts, IRAs, brokerage accounts don't disqualify you
- Vacation homes don't disqualify you (though they may indicate income)
Other states with similar waivers (varies by program): Arizona, Connecticut, DC, Delaware, Mississippi, New York, Vermont, parts of Massachusetts.
The four Medicare Savings Programs:
1. QMB (Qualified Medicare Beneficiary)
- 2026 income limit: ~$1,275/month single, ~$1,724/month married
- Pays Part B premium ($202.90/mo savings = $2,435/year)
- Pays Part A and Part B deductibles, copays, coinsurance
- Members pay $0 to providers for Medicare-covered services
- Auto-eligible for Extra Help on prescription drugs
2. SLMB (Specified Low-Income Medicare Beneficiary)
- 2026 income limit: ~$1,526/month single, ~$2,064/month married
- Pays Part B premium only
- Auto-eligible for Extra Help
3. QI (Qualifying Individual)
- 2026 income limit: ~$1,715/month single, ~$2,320/month married
- Pays Part B premium only
- Auto-eligible for Extra Help
4. QDWI (Qualified Disabled and Working Individual)
- For under-65 disabled people who returned to work and lost premium-free Part A
- Helps pay Part A premium
- Higher income limits
Why Alabama's waiver matters in practice:
A 70-year-old Alabama widow with:
- $1,200/month Social Security income
- $150,000 in savings (sale of family home moved to investments)
- $40,000 in IRA
- Paid-off small condo
In most states: DENIED MSP because of $190,000 in countable resources.
In Alabama: QUALIFIES for QMB based solely on the $1,200/month income (under the $1,275 limit). Saves $2,435/year in Part B premium PLUS thousands more in deductibles, copays, and coinsurance that QMB covers. Total annual benefit: $4,000-$6,000.
How to apply in Alabama:
- Apply through Alabama Medicaid Agency (not Social Security)
- Online: medicaid.alabama.gov
- Phone: 1-800-362-1504 or your county Medicaid office
- In person at any Alabama Medicaid office
- Free help from Alabama SHIP: 1-800-243-5463
Application takes 30-60 days for approval typically. Once approved:
- Part B premium savings start automatically (Social Security deduction stops)
- Doctors and pharmacies notified through Medicare's coordination of benefits system
- Extra Help on Part D drugs auto-applies
Common Alabama MSP myths to ignore:
- ❌ "I have too much savings" — Alabama doesn't count assets
- ❌ "I own my home" — Primary home never counted in any state
- ❌ "I have an IRA" — Doesn't disqualify in Alabama
- ❌ "I have a car" — One vehicle never counted
- ❌ "I'm not poor enough" — Check the income thresholds; many middle-income retirees qualify
Other Alabama Medicare advantages:
- BCBS Alabama dominance creates network depth (most Alabama doctors accept BCBS)
- Alabama is one of 8 states that bans Medigap Part B excess charges (effectively eliminating risk of "limiting charge" surprise billing)
- Strong VA + Medicare coordination given Alabama's large veteran population
Top metros we serve:
- [Birmingham Medicare & ACA](/metro/birmingham-al/)
- [Huntsville Medicare & ACA](/metro/huntsville-al/)
- [Mobile Medicare & ACA](/metro/mobile-al/)
- [Montgomery Medicare & ACA](/metro/montgomery-al/)
What to do next: Call (866) 534-1886. We screen Alabama Medicare beneficiaries for MSP eligibility based on Alabama's income-only test, help with the application, and pair MSP with the right Medicare Advantage or Medigap + Part D plan. Free, no obligation.