Medicare Low Income Subsidy

What To Know About The Low-Income Subsidy — Medicare Extra Help Program

Medicare Low Income Subsidy (LIS) — What is it?

You may qualify for a government program that helps pay for Medicare Part D prescription drug costs if you have limited income.

The government program will help you pay for your Medicare Part D annual deductible, copayments, coinsurance, and monthly premium. This is if you are receiving the low-income subsidy (LIS). Also if you enrolled in the Extra Help program, then you do not have a gap in your prescription drug coverage. This gap is also known as the Medicare “donut hole” or the coverage gap. The amount of subsidy you get depends on two factors:

1. Resource limitations set by the Social Security Act
2. Your income compared to the Federal Poverty Level.

Are you eligible for Medicare Extra Help?

The following are the qualifications for the low-income subsidy under Medicare Part D:

• If your annual income is above the eligibility limit but you financially help other family members who also live in the same household. Or you live in Alaska or Hawaii. Then you qualify for the low-income subsidy.
• If your assets and annual income fall lower than the eligibility limit. Then you qualify for the low-income subsidy. The eligibility limits for the Medicare Extra Help Program could change from one year to the next. So, to look at the most recent eligibility levels, visit Medicare.gov

If you have any of the following assets below, then they count toward your eligibility:

• IRAs and mutual funds
• Bonds and stocks, including U.S. savings bonds
• Cash and bank accounts, including certificates of deposit, checking, and savings
• Real estate anywhere outside of your primary

Many people do not know that they actually qualify for Medicare Extra Help Savings. You should note that when determining your eligibility for the low-income subsidy, Medicare does not count things like your insurance policies; your car; or your home (or primary residence). So you may qualify for Medicare Extra Help Savings without even knowing it. If you want to find out if you qualify, then simply apply.

How you can apply for Medicare Extra Help

If you want to apply for the Medicare low-income subsidy, then you must fill out an application form with Social Security. The form is called “Application for Extra Help with Medicare Prescription Drug Plan Costs” (SSA-1020). The following is where you can apply and submit this form, here’s how:

• Call Social Security and apply over the phone or request that they mail an application to you. You can call Social Security at 1–800–772–1213 (TTY 1–800–325–0778). Social Security representatives are available by phone Monday-Friday, from 7AM — 7PM
• Apply in person at your local Social Security office
• Apply online here — www.socialsecurity.gov/extrahelp

Social security will review your application and notify you in the mail if you are eligible. At the time you qualify for Extra Help, you can sign up to a Medicare Part D Prescription Drug Plan if not yet enrolled.