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Medicare Insurance Premium Payment Program (MIPP)

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Views: 31215
Posted: 22 Feb, 2021
by Sarah Rakin (New York Legal Assistance Group)
Updated: 27 Sep, 2024
by Valerie Bogart (New York Legal Assistance Group)

Some "dual eligible" beneficiaries (people who have Medicare and Medicaid) are entitled to receive reimbursement of their Medicare Part B premiums from New York State through the Medicare Insurance Premium Payment Program (MIPP).   The Part B premium is $174.70 in 2024.   MIPP is for some groups who are either not eligible for --  or who are not yet enrolled in--  the Medicare Savings Program (MSP), which is the main program that pays the Medicare Part B premium for low-income people.   Some people are not eligible for an MSP even though they have full Medicaid with no spend down. This is because their income is higher than MSP income limits, but they are still eligible for Medicaid  in a special Medicaid eligibility category -- discussed below.   MIPP reimburses them for their Part B premium because they  have “full Medicaid” (no spend down) but are ineligible for MSP because their income is above the MSP QMB level (138% of the Federal Poverty Level (FPL).

 Even if their income is under the QI-1 MSP level (186% FPL), they may not enroll in QI-1 MSP because one cannot have both QI-1 and Medicaid). Instead, these consumers can have their Part B premium reimbursed through the MIPP program.

In this article:

  1. Five Groups who are Eligible for MIPP
  2. MIPP vs MSPs- How are They Different?
  3. MIPP Enrollment 
  4. Health Insurance Premium Payment Program (HIPP)
  5. MIPP Guidance and Directives

A.  Five Groups who are Eligible for MIPP

The MIPP program was established because the State determined that those who have full Medicaid and Medicare Part B should be reimbursed for their Part B premium, even if they do not qualify for MSP, because Medicare is considered cost effective third party health insurance, and because consumers must enroll in Medicare as a condition of eligibility for Medicaid (See 89 ADM 7). There are generally five groups of dual-eligible consumers that are eligible for MIPP:

1.  Those Enrolled in the Medicaid Buy in for Working People with Disabilities (MBI-WPD):

  • MBI-WPD is a program for people under 65 who are disabled and working.  They have two big financial advantages:

    1. They can be eligible for Medicaid at much higher income limits. The 2024 MBI WPD net income limit is $3,138 per month (250% FPL), compared to the regular disabled/aged/blind (DAB) Medicaid income limit of $1,732 per month (138% FPL). (Both of those limits are net income, after applicable income disregards). See this article for current income limits.

    2.  Earned income has a special "disregard" as a work incentive.  Subtract $65 from monthly gross earned income, then deduct half of the remainder.  So less than half of gross monthly income counts against the higher MBI-WPD income level.   See links in this article for a more detailed explanation.

Therefore, many MBI WPD consumers have incomes higher than what MSP normally allows, but still have full Medicaid with no spend down. Those consumers can qualify for MIPP and have their Part B premiums reimbursed. See  MAXIMUS, NY Health Insurance Programs Training, Frequently Asked Questions- 2nd question under MEDICARE SAVINGS PROGRAM HEADING -

 "What is the advantage of a MIPP eligibility as opposed to an MSP?"   

"The main scenarios are clients in the MBI-WPD program and those with full Medicaid under MAGI-like budgeting who have income above the SLMB level.** Since clients in these scenarios cannot have full Medicaid and QI, they are given full Medicaid coverage and MIPP reimbursement. Also, there are clients who need a partial MIPP to reimburse them up to the MA level. Additionally, LDSS staff will see recipients being referred from NYSOH to the district who are in receipt of MIPP. These clients may be eligible for MSP going forward at the district but would be receiving MIPP at the time of referral.
Additionally, LDSS staff will see recipients who are being referred from NYSOH to the District who are in receipt of MIPP. These clients may be eligible for MSP going forward at District but would be receiving MIPP at the time of referral."

**NYLAG note:  This has not been updated since  SLIMB was eliminated effective Jan. 2023.  To be current, replace "SLMB" with "QMB" in that sentence.  

NYLAG EXAMPLE:   Sam is age 50 and has Medicare and MBI-WPD. They gets $2000/mo gross from Social Security Disability and also make $1000/month through work activity. 

  •     $ 467.50  -- EARNED INCOME - Because Sam is disabled, the DAB earned income disregard applies: 

$1,000 - $65 = $935.     Countable earned income is 1/2 of $935 = $467.50

  • +  $2000.00 -- UNEARNED INCOME from Social Security Disability - without subtracting the Part B premium. 

  • = $2,447.50 --TOTAL income. (after deducting $20 disregard) This is above the QMB limit of $1,732 (2024) but they can still qualify for MIPP because eligible for MBI-WPD.  

2.  Parent/Caretaker Relatives with MAGI-like Budgeting - Including Medicare Beneficiaries:

  • Consumers who fall into the DAB category (Age 65+/Disabled/Blind)  and would otherwise be budgeted with non-MAGI rules can opt to use Affordable Care Act MAGI rules if they are the parent/caretaker of a child under age 18 or under age 19 and in school full time. This is referred to as “MAGI-like budgeting.”   

  •  MAGI-like consumers can be enrolled in either MSP or MIPP, depending on whether their income is higher or lower than 138% of the FPL. If their income is under 138% FPL, they are eligible for MSP as a QMB.  If income is above 138% FPL, then they can enroll in MIPP.  (See GIS 18 MA/001 - 2018 Medicaid Managed Care Transition for Enrollees Gaining Medicare, #4).

3.  Medicaid Recipients whose Medicaid is Handled on the NYS of Health Marketplace and are newly enrolled in Medicare

  • When a consumer has Medicaid through the New York State of Health (NYSoH) Marketplace and then enrolls in Medicare when she turns age 65 or because she received Social Security Disability for 24 months, her Medicaid case is normally** transferred to the local department of social services (LDSS)(HRA in NYC) to be rebudgeted under non-MAGI budgeting.   

    • Before 2023,  during the transition process, NYSOH would arrange for her to be  reimbursed for the Part B premiums via MIPP. 

    • Since Jan. 1, 2023, NYSOH enrolls her directly into the QMB Medicare Savings Program at the time of making the referral of the case to the LDSS/HRA.  See GIS 23 MA/10 - Update to Medicare Premium Payment Process for Individuals Referred From NY State of Health to a Local Department of Social Services May 26, 2023.    

    • However, during  the COVID-19 emergency, and continuing through its "unwinding," which is ongoing in 2024-2025, those who have Medicaid through the NYSOH marketplace and enroll in Medicare should NOT have their cases transitioned to the LDSS. They should keep the same MAGI budgeting. See GIS 20 MA/04 or this article on COVID eligibility changes and the unwinding.   We understand that NYSOH will eventually enroll all such individuals into the QMB MSP, rather than reimburse them through MIPPA for the Part B premium.    Once their Medicaid case is eventually transferred to DSS/HRA,  the MSP case will also be transferred. 

    • However, as of Sept. 2024, these new dual eligibles are NOT being enrolled by NYSOH into MSP, and should be receiving MIPP reimbursement for their Part B premium.   If they are not, they should call NYSOH at 1.855.355.5777.

      See GIS 18 MA/001 - 2018 Medicaid Managed Care Transition for Enrollees Gaining Medicare, #4 for an explanation of the process that existed before 2023.  That directive also clarified that reimbursement of the Part B premium will be made regardless of whether the individual is still in a Medicaid managed care (MMC) plan.

4.  Those with Special Budgeting after Losing SSI (DAC, Pickle, 1619b)

Disabled Adult Child (DAC): 

  • Special budgeting is available to those who are 18+ and lose SSI because they begin receiving Disabled Adult Child (DAC) benefits (or receive an increase in the amount of their benefit). Consumer must have become disabled or blind before age 22 to receive the benefit. If the new DAC benefit amount was disregarded and the consumer would otherwise be eligible for SSI, they can keep Medicaid eligibility with NO SPEND DOWN. See this article.

  • Consumers may have income higher than MSP limits, but keep full Medicaid with no spend down. Therefore, they are eligible for payment of their Part B premiums. See page 96 of the Medicaid Reference Guide (Categorical Factors). If their income is lower than the MSP SLIMB threshold, they can be added to MSP. If higher than the threshold, they can be reimbursed via MIPP. 

  • See also 95-ADM-11: Medical Assistance Eligibility for Disabled Adult Children, Section C (pg 8):

    • "Individuals who are certified as DAC MA eligible and who are in receipt of Medicare Part B are eligible to have MA pay the appropriate Medicare premium on their behalf through the Buy-In system."

Pickle & 1619B:

5.  When the Part B Premium Reduces Countable Income to Below the Medicaid Limit

  • Since the Part B premium can be used as a deduction from gross income, it may reduce someone's countable income to below the Medicaid limit. The consumer should be paid the difference to bring her up to the Medicaid level ($1,732/month in 2024). They will only be reimbursed for the difference between their countable income and the current income limit, not necessarily the full amount of the premium.
  • See GIS 02-MA-019: Reimbursement of Health Insurance Premiums

B.  MIPP vs. MSPs - How are They Different?

MIPP and MSP are similar in that they both pay for the Medicare Part B premium, but there are some key differences:

  • MIPP structures the payments as reimbursement -- beneficiaries must continue to pay their premium (via a monthly deduction from their Social Security check or quarterly billing, if they do not receive Social Security) and then are reimbursed via check.
    • In contrast, MSP enrollees are not charged for their premium.  Their Social Security check usually increases because the Part B premium is no longer withheld from their check.
  • MIPP  only provides reimbursement for Part B.  It does not have any of the other benefits MSPs can provide, such as:

  • A consumer cannot have MIPP without also having Medicaid, whereas MSP enrollees can have MSP only. Of the above benefits, Medicaid also provides Part D Extra Help automatic eligibility. 

C. MIPP Enrollment 

  • There is no application process for MIPP because consumers should be screened and enrolled automatically (00 OMM/ADM-7).

  • Either the state or the LDSS is responsible for screening & distributing MIPP payments, depending on where the Medicaid case is held and administered (14 /2014 LCM-02 Section V).  

  • If a consumer is eligible for MIPP and is not receiving it, they should contact whichever agency holds their case and request enrollment. Unfortunately, since there is no formal process for applying, it may require some advocacy.

    • If Medicaid case is at New York State of Health they should call 1-855-355-5777.  Consumers will likely have to ask for a supervisor in order to find someone familiar with MIPP.

    • If Medicaid case is with HRA in New York City, they should email mipp@hra.nyc.gov

    • If Medicaid case is with other local districts in NYS, call your local county DSS. 

    • See more here about consumers who have Medicaid on NYSofHealth who then enroll in Medicare - how they access MIPP.

  • Once enrolled, it make take a few months for payments to begin.

  • Payments will be made in the form of checks from the Computer Sciences Corporation (CSC), the fiscal agent for the New York State Medicaid program. The check itself comes attached to a remittance notice from Medicaid Management Information Systems (MMIS). Unfortunately, the notice is not consumer-friendly and may be confusing. See attached sample for what to look for.

D.  Health Insurance Premium Payment Program (HIPP)

E.  MIPP Guidance and Directives:

SSA POMS: HI 00815.001 State Buy In Program

NYS DIrectives

New York CIty Policies

Tags
MIPP Medicare Insurance Premium Payment Program
Attached files
item Part B reimbursement - MBI WPD.pdf (36 kb) Download
item MIPP Check Example.pdf (2.23 mb) Download
item HRA chart March 1 2024.pdf (304 kb) Download
item Excerpt HIPP Notebook - 2017 9.1.16 for Print v2 (1).pdf (1.06 mb) Download

Also read
item Income and Resource Limits for New York State Public Health Insurance Programs
item Medicaid Spend-Down
item The Medicaid Buy-In for Working People With Disabilities (MBI-WPD)
item Extra Help - The Part D Low Income Subsidy and How to Get It - 2024 Changes
item "Qualified Medicare Beneficiaries" (QMB) - Protections against "Balance Billing"
item Medicare Savings Programs (MSP) in New York
item Medicaid & MSP: Must apply for Social Security and Enroll in Medicare
item "MAGI" Medicaid Eligibility under the Affordable Care Act - Rules for Most People Under age 65 Without Medicare

Also listed in
folder Medicaid -> Financial Eligibility

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"Qualified Medicare Beneficiaries" (QMB) - Protections against...       Medicaid & MSP: Must apply for Social Security and Enroll in...


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