Arizona Medicare Savings Programs can eliminate or sharply reduce Medicare premiums and cost-sharing for income-eligible seniors and people with disabilities. The broadest tier, QMB, wipes out the Part B premium and all Medicare cost-sharing in one program.
What Are Medicare Savings Programs?
Medicare Savings Programs are Medicaid-administered benefits that pay some or all of a low-income Medicare beneficiary's premiums and cost-sharing. Under Title XIX of the Social Security Act, QMB, SLMB, and QI are mandatory eligibility groups, meaning every state plan must cover them.
In Arizona, the programs are administered by the Arizona Health Care Cost Containment System (AHCCCS). AHCCCS determines both financial eligibility and ongoing enrollment for all three MSP tiers.
Because MSPs use the SSI-related income methodology rather than MAGI rules, two income disregards apply before the income test is run: a $20/month general income disregard applied first to unearned income, and a $65 + half of remaining earned income disregard for working beneficiaries. The income limits below reflect the $20 disregard already applied.
QMB: Qualified Medicare Beneficiary
QMB is the most valuable of the three programs. It covers:
- The Medicare Part A premium (if any; most beneficiaries have premium-free Part A from 40 or more work quarters)
- The Medicare Part B standard premium ($185/month in 2026 per CMS)
- The Part A inpatient hospital deductible ($1,736 in 2026)
- The Part B annual deductible ($257 in 2026)
- All Medicare coinsurance and copays across every Medicare-covered service
2026 Arizona QMB income limits: at or below $1,350/month for a single person, $1,823/month for a couple. These figures reflect 100% of the Federal Poverty Level with the $20 general income disregard applied.
Resource limit: $9,950 for one person, $14,910 for a couple. The primary residence and one vehicle are fully excluded from this count.
For a single Arizona senior on Social Security, QMB can save more than $3,000 a year in premiums, deductibles, and copays combined. Every QMB enrollee is automatically deemed eligible for full Part D Extra Help.
| Household size | Monthly income limit | Resource limit |
|---|---|---|
| Single | $1,350 | $9,950 |
| Couple | $1,823 | $14,910 |
SLMB: Specified Low-Income Medicare Beneficiary
SLMB pays one benefit: the Medicare Part B premium. At the 2026 standard rate of $185/month, that is $2,220 per year in direct savings.
2026 Arizona SLMB income limits: $1,351 to $1,616/month for a single person, $1,824 to $2,188/month for a couple.
Resource limit: same as QMB: $9,950 single, $14,910 couple.
SLMB does not pay deductibles or copays. But for a beneficiary with few medical claims, the Part B premium is the dominant out-of-pocket cost, and SLMB removes it.
SLMB enrollment also triggers automatic Part D Extra Help, which reduces generic copays to $5.10 and brand-name copays to $12.65, with a $0 deductible and $0 premium on a benchmark Part D plan.
| Household size | Monthly income range | Resource limit |
|---|---|---|
| Single | $1,351-$1,616 | $9,950 |
| Couple | $1,824-$2,188 | $14,910 |
QI: Qualifying Individual
QI covers the Part B premium only, the same as SLMB, but at a higher income band: $1,617 to $1,816/month single, $2,189 to $2,459/month couple (2026 Arizona figures).
Two structural differences from QMB and SLMB:
- First-come, first-served. QI is funded through a capped federal allotment. Arizona allocates enrollment on a first-come, first-served basis, with a preference for prior-year enrollees. Unlike QMB and SLMB, which are entitlements, QI enrollment is not guaranteed.
- Mutually exclusive with full Medicaid. Anyone eligible for a full-benefit Medicaid category cannot be on QI. They would instead qualify for QMB-Plus or SLMB-Plus, which layer full Medicaid benefits on top of MSP cost-sharing protection.
Like SLMB, QI enrollment triggers automatic Part D Extra Help.
| Household size | Monthly income range | Resource limit |
|---|---|---|
| Single | $1,617-$1,816 | $9,950 |
| Couple | $2,189-$2,459 | $14,910 |
Full Program Comparison
| Program | Single income limit | Couple income limit | What it pays | Resource limit |
|---|---|---|---|---|
| QMB | Up to $1,350/mo | Up to $1,823/mo | Part A + Part B premiums + all cost-sharing | $9,950 / $14,910 |
| SLMB | $1,351-$1,616/mo | $1,824-$2,188/mo | Part B premium only | $9,950 / $14,910 |
| QI | $1,617-$1,816/mo | $2,189-$2,459/mo | Part B premium only (capped allotment) | $9,950 / $14,910 |
Income limits reflect 100% FPL (QMB), 100-120% FPL (SLMB), and 120-135% FPL (QI) with the $20 general income disregard applied.
The QMB Billing Prohibition
Federal law (42 USC 1396a(n)(3)(B)) prohibits any Medicare provider from billing a QMB enrollee for Medicare cost-sharing. This applies to Original Medicare and Medicare Advantage providers alike, whether or not they contract with AHCCCS.
If you are a QMB enrollee and receive a bill for a deductible, coinsurance, or copay:
- Tell the provider you are enrolled in QMB and cite the federal prohibition.
- Show your AHCCCS eligibility notice or Medicare card with QMB indicator.
- Call 1-800-MEDICARE (1-800-633-4227) to file a complaint.
- Contact the Arizona State Health Insurance Assistance Program (SHIP) for free help disputing the charge.
A provider who has already billed a QMB enrollee must recall that bill from collections and refund any payment received.
Part D Extra Help / Low-Income Subsidy
All three Arizona MSP programs automatically confer full Part D Extra Help (also called the Low-Income Subsidy, or LIS). No separate application is required.
Under the 2026 Part D benefit structure:
- $0 premium on a benchmark Part D plan
- $0 annual deductible
- $5.10 per generic prescription
- $12.65 per brand-name or preferred multi-source drug
- $0 in copays after the $2,100 annual out-of-pocket cap
For a senior filling six prescriptions per month, Extra Help alone can represent $1,500 to $2,500 in annual drug-cost savings on top of the Part B premium benefit. The deeming flows from AHCCCS to CMS monthly after MSP enrollment. If you are not yet in a Part D plan, CMS will auto-assign you to a zero-premium benchmark plan.
Resource Counting: What's Excluded
The $9,950/$14,910 resource test excludes several major assets:
Not counted:
- Primary residence, regardless of value
- One vehicle, regardless of value
- Household goods and personal effects
- Prepaid burial arrangements and a burial fund up to $1,500 per person
Counted:
- Checking and savings account balances
- Stocks, bonds, mutual funds, CDs
- A second vehicle or vacation property
- Non-exempt cash-value life insurance above the $1,500 threshold
Many Arizona seniors disqualify themselves prematurely by including their home or car in the resource calculation. Neither counts.
How to Apply for Arizona Medicare Savings Programs
AHCCCS offers two primary application channels:
Online via Health-e-Arizona Plus Apply at healthearizonaplus.gov. Create an account, complete the Medicaid or MSP application, and upload supporting documents. This is the fastest channel for most applicants.
By phone through ALTCS Call AHCCCS at 1-888-621-6880. Staff can assist with eligibility screening and application submission.
Through Social Security Administration Applying for Part D Extra Help at your local SSA office using Form SSA-1020 generates a mandatory referral to AHCCCS. Your SSA filing date becomes the protected filing date for MSP purposes under 42 USC 1320b-14.
What to Gather Before Applying
- Medicare card (showing your Medicare Beneficiary Identifier)
- Social Security card or proof of SSN
- Most recent SSA benefit award or COLA letter
- Recent bank and investment account statements
- Pension or annuity income statements, if applicable
- Proof of Arizona residency
Processing Timelines
AHCCCS must process non-disability MSP applications within 45 days under 42 CFR 435.912. Disability-related applications may take up to 90 days.
- QMB: coverage begins the first day of the month after AHCCCS approves the application. Federal law prohibits retroactive QMB coverage, so apply early.
- SLMB and QI: up to three months of retroactive coverage is available if you were eligible during that period. File as early as possible, even before gathering every document, to protect your filing date.
After approval, AHCCCS sends a written notice. For QMB, a state buy-in notice goes to CMS, which stops the Part B premium withholding from your Social Security check the following month. For SLMB/QI, any previously withheld premiums covering retroactive months are refunded by SSA as a lump sum.
Frequently Asked Questions
An Arizona Medicare beneficiary with monthly income at or below $1,350 (single) or $1,823 (couple) and countable resources at or below $9,950/$14,910. The home and one vehicle are excluded from resources. QMB pays Part A and Part B premiums plus all Medicare deductibles, copays, and coinsurance.
No. Every Arizona QMB, SLMB, and QI enrollee is automatically deemed eligible for full Part D Extra Help. AHCCCS transmits deeming information to CMS monthly. CMS will auto-assign you to a zero-premium benchmark Part D plan if you are not already enrolled in one.
Yes, for up to three months if you were eligible during that period. QMB has no retroactive coverage. File as early as possible to protect your filing date even if your documentation isn't complete yet.
Do not pay the bill. Federal law prohibits Medicare providers from billing QMB enrollees for cost-sharing. Contact 1-800-MEDICARE and Arizona SHIP for free help resolving the charge.
No. QI enrollment is not available to anyone who qualifies for full-benefit Medicaid. If you qualify for full AHCCCS coverage, you would be placed in QMB-Plus or SLMB-Plus, which combine MSP cost-sharing protections with full Medicaid.
Before AHCCCS runs the income test, $20 per household per month is excluded from unearned income (Social Security, pensions, VA compensation). That is why the QMB single ceiling is $1,350 rather than $1,330 (100% FPL without the disregard). For applicants with wages, an additional $65 plus half of remaining earned income is also excluded.
Learn More
- Arizona Medicaid Eligibility and Income Limits
- How to Apply for Arizona Medicaid
- Understanding the Personal Needs Allowance
Find personalized help applying for Arizona Medicare Savings Programs at brevy.com.
The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.