QI-1 (Qualifying Individual) is a Medicaid program that pays your monthly Medicare Part B premium, which is $202.90 per month for most people in 2026. QI-2 was a related program that provided a smaller cash benefit, but it ended on December 31, 2002, and no longer exists. If you’ve seen both terms mentioned, QI-1 is the only one still active today.
What QI-1 Covers
The QI program has a narrow but valuable purpose: it covers your Medicare Part B premium so the cost isn’t deducted from your Social Security check each month. That’s roughly $2,400 a year back in your pocket. It won’t help with Part A premiums, deductibles, or copays, but the Part B savings alone are significant for people on a fixed income.
You may also be able to get retroactive reimbursement for Part B premiums you’ve already paid, going back up to three months before your application date. And there’s a bonus benefit that many people don’t realize: qualifying for QI automatically enrolls you in Medicare’s Extra Help program, which covers most or all of your Part D prescription drug costs. Most people who get Extra Help pay no premiums or deductibles for their drug plan.
Income and Asset Limits
QI-1 is designed for people whose income falls between 120% and 135% of the federal poverty level. For 2025, that means monthly income up to $1,761 for an individual or $2,380 for a married couple. If your income is below 120% of the poverty level, you may qualify for a different Medicare Savings Program with broader benefits, like SLMB or QMB (more on those below).
Asset limits also apply. You can have up to $9,950 in countable resources as an individual, or $14,910 as a couple. Importantly, several major assets don’t count toward those limits:
- Your primary home
- One car
- Household goods, wedding rings, and engagement rings
- Burial spaces and up to $1,500 per person in burial funds
- Life insurance policies with a cash value under $1,500
So if you own your home and a car, those won’t disqualify you. The resource test mainly looks at bank accounts, stocks, bonds, and similar liquid assets.
How QI-1 Compares to Other Medicare Savings Programs
QI-1 is one of three active Medicare Savings Programs, each serving a different income tier. The key differences come down to what they cover and who qualifies:
- QMB (Qualified Medicare Beneficiary): For people at or below 100% of the federal poverty level. Covers Part A premiums, Part B premiums, deductibles, and coinsurance. This is the most comprehensive option.
- SLMB (Specified Low-Income Medicare Beneficiary): For people between 100% and 120% of the poverty level. Covers the Part B premium only, similar to QI-1.
- QI-1 (Qualifying Individual): For people between 120% and 135% of the poverty level. Also covers the Part B premium only.
SLMB and QI-1 provide the same core benefit (paying your Part B premium), but QI-1 reaches people with slightly higher incomes. One practical difference: you cannot receive QI-1 if you’re already enrolled in full Medicaid, since Medicaid would already cover those costs.
What Happened to QI-2
QI-2 was a smaller companion program that gave eligible Medicare beneficiaries a modest annual cash payment to help offset Part B costs, rather than covering the full premium. It ended on December 31, 2002, and Congress did not renew it. If you encounter references to QI-2 in older documents or on state websites, the program is no longer available. QI-1 is the only Qualifying Individual program still in effect.
How to Apply
You apply for QI-1 through your state Medicaid agency, not through Medicare directly. Each state handles its own enrollment, so the exact process and paperwork vary depending on where you live. You’ll generally need to provide proof of income, documentation of your assets, and verification that you’re enrolled in Medicare.
Processing typically takes up to 45 days from the point the agency has all your information. Once approved, QI-1 entitlement can be retroactive up to three months before your application date, meaning you may be reimbursed for premiums already paid during that window.
One important detail: QI-1 isn’t a one-time enrollment. You need to reapply every year by submitting updated income and resource information to your state Medicaid agency. Some states send renewal forms automatically, while others require you to initiate the process. If your financial situation hasn’t changed much, the annual redetermination is usually straightforward, but missing it can cause a gap in your benefit.