Medicare Low Income Subsidy – Extra Help For Part D

Do you know that you may qualify for Medicare Low Income Subsidy?

LIS (Low Income Subsidy) is also called “Extra Help” in paying the cost of Medicare Prescription Drug Plan. This assistance program is for beneficiaries of Medicare who has limited income and resources. Many people may not even be aware that they are qualified for Medicare Low Income Subsidy (LIS) for prescription drug plan.

Who qualifies for Low Income Subsidy (LIS)?

The amount of extra help qualifying people get is based on income and resources.

• Income:
  To qualify for extra help with Medicare prescription drug plan costs in 2022, your annual income must be less than $20,385 for an individual ($27,465 for a married couple living together). Your combined savings, investments, and real estate are not worth more than $30,950, if you are married and living with your spouse, or $15,510 if you are not currently married or not living with your spouse. (Do NOT count your home, vehicles, personal possessions, life insurance, burial plots, irrevocable burial contracts or back payments from Social Security or SSI.)
• Resources:
  To qualify for Extra Help, your resources must be limited to $14,100 for an individual or $28,150 for a married couple living together.

Resources include the value of the things you own. Some 
examples are:

• Real estate (other than your primary residence)
• Bank accounts including checking, savings and
certificates of deposit
• Stocks
• Bonds, including U.S. Savings Bonds
• Mutual funds
• Individual Retirement Accounts (IRAs)
• Cash at home or anywhere else

However, some people get Extra Help automatically. These include people who:

• have dual eligibility (enrolled in both Medicaid and Medicare)
• receive Supplemental Security Income (SSI)
• qualify for a Medicare Savings Program

What can you get from Medicare Low Income Subsidy (LIS)?

• Financial Assistance — People with limited income and assets who qualify for extra help will receive aid in paying their monthly premium, yearly deductibles, and drug co-pays for Medicare Part D. Furthermore, the LIS program could pay up to 75% or more of your drug costs including prescription drug premiums, annual deductibles, copayment amounts and coinsurance.

• Protection — People who get Extra Help do not need to wait for the Annual Open Enrollment Period (Oct. 15 – Dec. 7) to change plans. This is especially helpful to seniors/adults with disabilities who may need to begin medications that are not on the approved drug list (formulary) of their current plan. In addition, there will be no Part D late enrollment penalty.