May 19, 2011
Medicare Low Income Subsidies for Beneficiaries
Eligibility for Low Income Subsidy
For individuals meeting income and asset limits, there is a government program that assists with the deductible, premium, and co-pay expenses of a Medicare prescription drug plan. The program is known as "Extra Help" or the "Low Income Subsidy" (LIS). For those that apply for the Extra Help program, the government will evaluate income and assets levels. Qualifying individuals may not only receive help with drug costs but, if income and assets are sufficiently low, these individuals will have their monthly premium paid by the government. Furthermore, individuals enrolled in the Extra Help program do not have a drug coverage gap (i.e. the donut hole).
Extra Help is run by the Social Security Administration. Individuals can apply for the program online. Our Medicare Part D comparison tool can help you determine if you are potentially eligible for the Extra Help program.
2011 Subsidy Amounts
For individuals eligible for Extra Help, the government determines the benefits based on the individual's degree of financial need. There are partial and full subsidies. In 2011, a single person earning less than $16,335 and having resources less than $12,640 qualified for the Extra Help program. For a married person, the threshold was $22,065 in joint income and resources less than $25,260. People living in Alaska or Hawaii have higher limits as do individuals with dependents.
