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Low-Income Subsidy

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General Information on the Low-Income Subsidy (LIS) or "Extra Help"

Medicare beneficiaries who have limited income and resources may qualify for extra help to pay for prescription drugs costs. This low-income subsidy from Medicare provides financial assistance for beneficiaries who have limited income and resources. Those who are eligible for this low-income subsidy will get help paying for their monthly premium, yearly deductible, prescription coinsurance and copayments and no gap in coverage.

Some people are automatically eligible for the low-income subsidy.  Those include people who are: full benefit dual eligibles; SSI recipients with Medicare; Medicare Savings Programs participants.

Some people must apply through SSA.  This includes Medicare beneficiaries with income below 150% FPL who meets an asset test—i.e.—beneficiaries who have a yearly income (in 2008) below $15,600 ($21,000 for a married person living with a spouse and no other dependents) and resources (in 2008) less than $11,990 ($23,970 for a married person living with a spouse and no other dependents).

Generally, dual eligibles and others deemed eligible for low-income subsidy pay no Part D plan premiums or deductibles, but pay $1.05 or $2.25 for generic drugs and $3.10 or $5.60 for brand-name drugs, depending on their income.

{1} Low-Income Subsidy Toolkit: This toolkit provides important resources for partners to help people with Medicare learn about and apply for extra help (the low-income subsidy, or LIS).

Low-Income Subsidy Campaign Materials:  The 2008 Low-Income Subsidy (LIS) Campaign effort has been established apart from other existing-LIS and open enrollment outreach efforts to fully dedicate resources to engage this hard-to-reach population in applying for the subsidy.

CMS is committed to disseminating updated and key publications to stakeholders and partners on LIS qualifications and tools to assist individuals in applying and understanding the subsidy program within Medicare Part D.

Look below for access to {2} print ads, {3} back-translations of print ads, and {4} other print materials including drop-in articles and brochures.

{5}UPDATED! Guidance to States on the Low-Income Subsidy  This guidance is intended for use by states in processing SSA applications and making determinations for subsidy eligibility upon request.  It will be updated periodically to reflect changes as necessary--updated as of May 2007.

{6 & 7}Notices to State Medicaid Directors on the Annual Re-determination of the Low-Income Subsidy (Re-deeming) CMS is preparing for the annual re-determination of Medicare Part D low-income subsidy (LIS) deemed status.  The notices to State Medicaid Directors (below) provides more details on this process.

{8} 2009 Prescription Drug Rate Information:  The prescription drug rate information includes the 2009 Part D National Average Monthly Bid Amount, Medicare Part D Base Beneficiary Premium, Part D Regional Low-Income Premium Subsidy Amounts, and Medicare Advantage Regional Benchmarks.

 

 

Downloads

{5}Guidance to States on the Low-Income Subsidy [PDF, 425KB]

{6} Notice to State Medicaid Directors on the Annual Re-determination of the Low-Income Subsidy (Re-deeming) [PDF, 81KB]

{7} 7/31/2008 Notice to State Medicaid Directors on the Annual Re-determination of the Low-Income Subsidy (Re-deeming) [PDF, 103 KB]

Related Links Inside CMS
{1} Low-Income Subsidy Toolkit

{2} Print Ads

{3} Back-translations of Print Ads

{4} Other Print Materials 

{8} 2009 Prescription Drug Rate Information

Information for Beneficiaries
Related Links Outside CMSExternal Linking Policy
There are no Related Links Outside CMS

 

Page Last Modified: 01/16/2009 11:08:29 AM
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