What is the Michigan Medigap Subsidy?


The Michigan Medigap Subsidy is a program that helps pay for Medigap coverage. If you qualify, you will pay less for your Medigap coverage. The program pays part of your premium (monthly cost) and you pay the rest.

How do you qualify?

To qualify, you need to:

  • Have a household income at or below 150% of the Federal Poverty Level (FPL). For example, $17,820 or less for one person or $24,030 or less for two people.
  • Qualify for Medicare
  • Have qualifying Medigap coverage from a participating insurer
  • Be a Michigan resident

People who have both Medicaid and Medicare do not qualify. Income is counted from your tax return. If you do not file a tax return, you can use information from other income statements, such as your Social Security benefit or IRA distribution statements. If you have other benefits such as SNAP (food stamps) or Medicare Part D, you may not need other income information.

The amount of subsidy depends on your age and whether you have a disability.

Example: If you are 75 years or older and your monthly premium is $265, the program pays $65 and you pay the remaining $200.

The following Medigap insurers participate in the program:

  • Blue Cross Blue Shield of Michigan
  • Blue Care Network
  • UnitedHealthcare AARP® Medicare Supplement
  • Priority Health

Other insurers may join the program. Call your Medigap insurer to verify if they participate in the program.

This program will last for five years or until funding ends, whichever comes first. By the end of 2018, there will be a clearer picture of how long the program will last. You will need to re-apply each year of the program.

You can apply in one of these ways:

5/15/17 Update:

The Michigan Health Endowment Fund announced Monday  it’s raising the eligibility threshold, starting in July. Residents with annual incomes at or below 225 percent of the poverty level – or $26,730 for an individual and $36,045 for a couple – will qualify. The existing cutoff is 150 percent of poverty – $17,820 per individual and $24,030 per couple. The monthly subsidy ranges from $40 to $125 depending one’s age and disability status.