Many people turning age 65 are surprised to learn about the costs associated with Medicare. Medicare is not free. Most people pay no premium for Medicare Part A, which covers hospital services, but Medicare Part B — which covers doctor visits, outpatient care, and medical equipment — carries a monthly premium. In 2026, the standard Part B premium is $202.90 per month. For people with higher incomes, the premium is higher. If you have both Medicare and Medicaid, however, you may not have to pay that premium at all.
Full Dual Eligibles: SSI, ABD, and MLTSS Medicaid
If you receive full Medicaid coverage — meaning Medicaid pays for your medical services, not just your Medicare premiums — Medicaid will pay your Medicare Part B premium through a process called Medicare “buy-in.” This applies to people receiving SSI-linked Medicaid, ABD Medicaid (Aged, Blind, and Disabled), and NJ MLTSS Medicaid (Managed Long Term Services and Supports), which covers assisted living and nursing facility services.
For SSI recipients, the Medicare buy-in is effective as of the Medicaid enrollment date. For all other full Medicaid recipients, including MLTSS enrollees, the buy-in takes effect two months after enrollment. During that gap, you may still be paying the Part B premium out of pocket. Once the buy-in is processed, Medicaid reimburses you for any out of pocket premiums paid after the two month waiting period, while the buy-in was pending.
Partial Coverage: Medicare Savings Programs
If you do not qualify for full Medicaid but have limited income and resources, you may still be able to get help with your Part B premium through a Medicare Savings Program (MSP). New Jersey offers several levels of coverage:
- Qualified Medicare Beneficiary (QMB): Covers the Part B premium, Part A and B deductibles, and coinsurance for people with income at or below 100% of the Federal Poverty Level (FPL).
- Specified Low-Income Medicare Beneficiary (SLMB): Covers the Part B premium only, for people with income between 100% and 120% of FPL.
- Qualifying Individual (QI / SLMB Q1): Covers part of the Part B premium for people with income between 120% and 135% of FPL.
You can apply for MSP benefits by completing the NJ Save application.