New York, NY — The Medicare Rights Center applauds Governor Hochul, sponsors Assemblywoman Amy Paulin and Senator Cordell Cleare, and members of the New York State Legislature for enacting essential legislation that will further simplify and expand access to the Medicare Savings Program (MSP). This critical initiative automates MSP enrollment using information from the Social Security Low-Income Subsidy (LIS) program, commonly known as Extra Help, helping older adults and people with disabilities more easily access this vital benefit.

The MSP provides a financial lifeline for eligible individuals by paying their Medicare Part B premiums ($174.70 per month in 2024) and enrolling them in Extra Help, the federal prescription drug subsidy program that the Social Security Administration estimates is worth about $5,900 per year. Combined, these benefits save enrollees an estimated $8,000 annually in health care costs, allowing them to maintain Medicare coverage, afford medications, and better meet daily living expenses like food and housing.

“Building upon the Medicare Savings Program expansion by automating enrollment is a necessary step toward ensuring that New Yorkers who need this assistance can get it,” said Fred Riccardi, president of the Medicare Rights Center. “This legislation will bring relief to many who might otherwise struggle with a cumbersome application process or remain unaware of the MSP.”

“This legislation will create an easier overall enrollment process, increase enrollment, and most importantly, help our seniors save money on health care,” said Assemblywoman Amy Paulin. “I thank my partner in the State Senate, Senator Cordell Cleare, for her work to pass this bill in the Senate, Governor Hochul for signing this bill into law, and the Medicare Rights Center for their staunch advocacy.”

State Senator Cordell Cleare, Chair of the Senate Aging Committee, stated: “The Medicare Savings Program has clear benefits that every Older New Yorker is entitled to, including assistance in paying for prescription drugs, deductibles, premiums, and wellness expenditures. This legislation helps to facilitate direct and robust enrollment of New Yorkers to ensure that every person eligible can take advantage of this program.”

For many Medicare beneficiaries, applying for the MSP has historically been complicated and time-consuming. Using existing information from Extra Help applications, the new legislation affirms recent federal efforts to remove such barriers, increasing access to affordable coverage. The streamlined approach helps individuals and reduces the administrative burden for Medicaid offices and other agencies tasked with processing benefits, making the system more efficient and equitable.

“This change recognizes the challenges that older adults and people with disabilities face when navigating complex benefit programs, as well as the need to modernize state systems,” said Riccardi. “Auto-enrollment represents a compassionate and practical solution, ensuring that lifesaving assistance reaches those who need it.”

Starting January 1, 2023, New York expanded MSP eligibility, and in 2024, the income limits increased to $2,355 per month for individuals and $3,189 per month for couples, with no asset limits. Recently, Governor Hochul announced that nearly one million New Yorkers are now enrolled in the benefit, improving their health outcomes and financial security. The auto-enrollment changes will take effect in 2026.

The Medicare Rights Center encourages anyone who thinks they might qualify for the MSP to explore their eligibility and seek assistance. Help is available through the Medicare Rights Center helpline at 800-333-4114, at www.medicareinteractive.org/mspny, or through the State Health Insurance Program.

“This legislation exemplifies what’s possible when policymakers prioritize the needs of their constituents,” said Riccardi. “We look forward to continuing to work with Governor Hochul, the legislature, and other stakeholders to find additional ways to streamline benefits enrollment and address affordability challenges.”