Medicare Beneficiary Assistance Improvement Act of 2002

Medicare Beneficiary Assistance Improvement Act of 2002 - Names the programs of benefits under the Medicaid program (title XIX of the Social Security Act (SSA)) that are commonly referred to as the "qualified Medicare beneficiary (QMB) program" and the "special low-income Medicare beneficiary (SLMB) program" as the Medicare Savings Programs.

Amends SSA title XIX with respect to Medicare Savings Programs to: (1) increase the SLMB eligibility income level from 120 to 135 percent of the poverty line; (2) deem to be qualified Medicare beneficiaries in certain States individuals already receiving benefits under SSA title XVI (Supplemental Security Income) (SSI); (3) permit individual self-certification of income and use of a simplified QMB or SLMB application form; (4) provide for automatic reenrollment without need to reapply; (5) direct the Commissioner of Social Security to provide for QMB and SLMB outreach through local offices of the Social Security Administration; (6) eliminate the assets test; (7) prohibit estate recovery under QMB and SLMB; and (8) provide for three months retroactive eligibility with respect to Medicare cost-sharing for QMBs.

Directs the Secretary of Health and Human Services (Secretary), the Secretary of the Treasury, and the Administrator of Social Security to enter into an arrangement for a demonstration project to identify Medicare beneficiaries who are likely, based on Internal Revenue Service (IRS) data, to qualify for benefits under the OMB or SLMB programs. Requires the Secretary to enter into a demonstration project to provide States with funds to use such information to do ex parte determinations or other methods for identifying and enrolling potentially eligible individuals.

Requires the Commissioner of Social Security to send a notice and application for Medicaid benefits to individuals identified as likely to be eligible for QMB or SLMB benefits when notifying them that they are eligible for benefits under Medicare part A (Hospital Insurance) or B (Supplementary Medical Insurance).