You can still qualify to get some benefits of the low-income subsidy plan even if your income is less than the eligibility criteria.
The extra help Medicare, LIS, and Low-income subsidy for Medicare offers help in which they do not count the income and assets. To find out more about this beneficial program of Medicare, read this blog till the end.
What Is A Low-Income Subsidy Plan?
We have already told you that the low-income subsidy and extra help plans are the same. So do not confuse the two again. Low-income subsidy plan is a federal program that pays for your out-of-budget costs of Medicare drug coverage. Therefore it is also known as the Part D low-income subsidy.
Read ahead about how to qualify to get low-income subsidy benefits.
Eligibility For The Low-Income Subsidy Plan
The eligibility criteria for a low-income subsidy plan mention the following:
- Your monthly income should be less than $1,719 in 2022. If your assets are below the criteria, you are eligible for the low-income subsidy plan. Your income should be less than $2,309 if you want to qualify as a couple.
- However, these limits also include a $20 disregard that Social Security Administration (SSA) automatically deducts from your unearned monthly income. For instance, the income for retirement.
- Also, if your income and assets are below the eligibility criteria, you can still qualify for a low-income subsidy plan. The authorities do not count certain income types of assets and the 20$ that we discussed above.
- Moreover, you automatically qualify for the low-income subsidy plan by Having Supplemental Security Income (SSI) or a Medicare Savings Program (MSP). You will receive a notice from Medicare informing you that you do not need to apply for the low-income subsidy plan again.
Benefits Of Low-Income Subsidy Plan
The low-income subsidy plan offers the following benefits:
- It pays for the plan D premium up to the specified amount of the state.
- It lowers the cost of prescription drugs.
- Give you SEP or the Special Enrollment Period once per calendar quarter in the first nine months. You can enroll in plan D or change your plans during this period.
- Eliminates plan D late enrollment penalty if you have delayed it.
You can qualify for the low-income subsidy plan based on your income or assets. Both plans help to cover the cost of the drugs. The medicine must be enlisted in the formulary list to receive financial aid. Not to mention that you must shop from pharmacies in the network of Medicare.
Remember that low-income subsidy help is not a replacement for plan D. You should already have a plan D to receive Medicare drug coverage and low-income subsidy. If you do not select a plan, they will automatically enroll you in any plan.
Low-Income Subsidy Plan Vs. Others
You can evaluate your expenses too if you’re eligible for the low-income subsidy plan or any other drug coverage plan. If the drug coverage covers your expenses well, it is fine; otherwise, you should enroll in the low-income subsidy plan.
Ask your employer whether you can get plan D benefits without losing retirement benefits. Moreover, if you cannot have plan D or retirement benefits, having both is not smart and effective. So carefully decide whether you need a plan D if the plan covers dependents and spouses.
Later, if you want a plan D, you will have a SEP for two months after losing the coverage.
To help you understand the low-income subsidy better, we have some FAQs. Read ahead and clear all your doubts.
The bottom line is that employers or people with retirement benefits cannot enroll in the low-income subsidy plan in a few cases. Contact your local Medicare officer if you want to buy a plan. You will be able to enroll in theMedicare low-income subsidywithout giving any penalty.
How To Apply For Low-Income Subsidy?
If you do not have a Medicare Savings Plan (MSP), or Supplemental Security Income (SSI), you can apply for the Low-income subsidy. You can apply online and fill in all the necessary details on the application form for enrollment.
Remember that a low-income subsidy plan only helps recover prescription drug costs. If you do not have the plan D, but you qualify for the LIS, you can also apply for the Special Enrollment Period (SEP)
What Does The Low-Income Subsidy Plan Cover?
If you have a low-income subsidy plan, you will pay the extra help copayment or a co-pay for the prescription drugs. You will always pay the lesser of the two. Note that copays may change during different times of the year. At times, the prescription drugs may also differ.
Tom has an extra help plan, and his income is below 1,719. His copays are 3.95$ and 9.85$ for drugs. Tom will pay an extra copay of 2$. That’s how a low-income subsidy helps you.
Where To Buy The Low-Income Subsidy Plan?
You can buy a medicare low-income subsidy from the Best Option Insurance Agency. Our vetted solutions and expert team will ensure you enjoy all the benefits of Low-Income Subsidy (LIS). Moreover, we provide the best insurance coverage from Dental to hospice care. Choose us and quit stressing about overwhelming drug prescription costs.
Q– What is the lowest income to qualify for Medicare?
A– Individual monthly income limit should be less than $1,719.
Q– Is LISP or low-income subsidy the same as extra help?
A– LISP and extra help plan are the same things.
Q– Does Social Security count as income for Medicare?
A– All types of Social Security count as income under Medicare’s low-income subsidy plan
Q– What are the benefits of a LIS program?
A– LIS plan or Extra help is somewhat similar to plan D. It helps you recover the cost of medicines and prescriptions.
Q– what is a LIS plan?
A– the Low-Income Subsidy (LIS) is a plan to help people with limited income and assets. It is also known as Extra Help.
Read also:- Medicare Prescription Drug Plan Tennessee: The Ultimate Guide