This bill aims to enhance the Medicare Savings Programs (MSP) by expanding eligibility criteria for low-income seniors and individuals with disabilities. It introduces a new chapter, CHAPTER 8.16, titled "Medicare Savings Programs," which outlines the purpose and definitions related to these programs. The bill specifies that the MSP will cover the monthly Medicare Part B premium and certain out-of-pocket costs for enrollees, particularly targeting individuals aged 65 and older and those with severe disabilities. The federal government will continue to provide financial support for these programs, and states are permitted to set income and asset limits that exceed federally mandated minimums.

Key changes include raising the income limit for qualified Medicare beneficiaries to one hundred twenty-five percent (125%) of the federal poverty line and establishing a new income range of one hundred twenty-five percent (125%) to one hundred sixty-eight percent (168%) of the federal poverty line for qualified individuals. Notably, there will be no asset limit applied to eligibility for these programs. The bill also mandates that the Secretary of Health and Human Services ensure a streamlined application process for individuals seeking enrollment in these programs, including utilizing data from the Low-Income Subsidy (LIS) program. The act will take effect upon passage.