LIS or Low Income Subsidy in Medicare

The Low-Income Subsidy, also known as Extra Help, is a program that provides financial assistance to low-income Medicare beneficiaries to help them afford the costs associated with Medicare Part D prescription drug coverage. Here are some key points about the Low-Income Subsidy (LIS) program:

1. Assistance with Prescription Drug Costs: The LIS program assists eligible beneficiaries in paying for their Medicare Part D prescription drug plan premiums, deductibles, copayments, and coinsurance. It helps reduce the out-of-pocket costs associated with prescription medications.
2. Income and Asset Limits: Eligibility for LIS is primarily based on income and assets. To qualify for Extra Help, individuals must meet specific income and asset limits, which are set by the federal government and may change annually.
3. Dual Eligibility: Many beneficiaries who qualify for State and federal Low Subsidies (LIS) are also dual-eligible, meaning they qualify for both Medicare and Medicaid. Medicaid beneficiaries are automatically eligible for Extra Help.
4. Application Process: Individuals can apply for the State and federal Low Subsidies (LIS) through various means, including Social Security, the Medicare website, or by contacting their State Medicaid office. There are different levels of assistance based on income and resources.
5. Automatic Enrollment: Some beneficiaries are automatically enrolled in the LIS program if they are dual-eligible or receive certain types of assistance from Medicaid or Supplemental Security Income (SSI).