Low income subsidy (LIS) Medicare prescription drug cost help
What's Extra Help?
The Low Income Subsidy (LIS), also known as Extra Help, is a program in the United States that helps people with limited income and resources pay for their Medicare prescription drug costs. The program is designed to assist individuals who would otherwise have difficulty paying for their medications.
To be eligible for the LIS program, you must be enrolled in a Medicare Part D prescription drug plan and meet certain income and asset requirements. In 2022, the income limit for full LIS eligibility is $20,385 for an individual and $27,465 for a married couple living together. The asset limit is $15,510 for an individual and $30,950 for a married couple.
If you are eligible for the LIS program, you may receive assistance with your monthly premiums, deductibles, co-payments, and coinsurance for Medicare Part D prescription drug coverage. You may also be able to enroll in a Medicare Advantage plan that includes prescription drug coverage
To apply for the LIS program, you can contact the Social Security Administration or your State Medicaid Office. You will need to provide information about your income, assets, and living situation to determine your eligibility.
You also won't have to pay a Part D late enrollment penalty while you get Extra Help
Some people qualify for Extra Help automatically, and other people have to apply.
Who gets Extra help automatically?
You'll get Extra Help automatically if you get:- Full Medicaid coverage
- Help from your state paying your Part B premiums (from a Medicare Savings Program)
- Supplemental Security Income (SSI)benefits from Social Security
You'll get a letter about your Extra Help. It tells you things like how much you'll pay, and your new Medicare drug plan, if you don't have one already.
What counts in resource limits : Money in checking, or retirement account, stocks and Bonds
States don't count : Your home, One car, Burial plot, Up to $1,500 for burial expenses if you have put that money aside, Furniture, Other household and personal items.
If you qualify for Extra Help
Will automatically enroll you in a Medicare drug plan (Part D), if you don’t have one already. They do this so you can get the cost savings you qualify for.
- About your new plan. You can pick a different Medicare drug plan if you want.
- What you’ll pay, depending on the “level” of Extra Help you get.
- That you get Extra Help for the rest of the calendar year. Even if your income changes in the middle of the year, you’ll keep getting Extra Help through December 31.
If you meet the income and resource limits for next year, you’ll keep getting Extra Help. They will mail you a letter only if:
- Your Extra Help changes
- You no longer qualify for Extra Help.
- You get moved to a different plan for next year.
If you don’t get a letter from Medicare or Social Security, you’ll keep the same level of Extra Help and same plan for next year.