The Part D benefit which provides prescription drug coverage to Medicare beneficiaries offers financial assistance known as Extra Help or LIS (Low Income Subsidy) to those with limited income and assets. If you are eligible for Extra Help or LIS (Low Income Subsidy), your Part D premiums, deductibles and copayments can be eliminated or significantly reduced. In addition, you will not be exposed to the gap in coverage, also known as the “donut hole.” About one-third of all Medicare beneficiaries are likely to be eligible for the low-income subsidy. The Social Security Administration estimates that this Extra Help could be worth an average of $4,000 per year. The National Committee strongly encourages all seniors who think they might be eligible for Extra Help to apply for this valuable assistance with their drug expenses.
You must have limited income and may have to pass an asset test to be eligible for Extra Help or LIS (Low Income Subsidy). Medicare Part D provides different levels of financial assistance based on income and asset limits. With exception to Alaska and Hawaii, you are eligible for some type of assistance if your annual income is less than $17,235 ($1,436.25 per month) for an individual and $23,265 ($1,938.75 per month) for a couple, and your assets are less than $11,800 for an individual and $23,580 for a couple, including allowed burial expenses. If you feel you meet the criteria either apply online via Social Security’s website https://secure.ssa.gov/i1020/start.
Generally, income such as wages, earnings from self-employment, Social Security benefits and pension payments count for the purpose of determining eligibility for Extra Help. Examples of income that does not count include income tax refunds and foster care payments. Examples of assets that count toward determining eligibility for Extra Help or LIS (Low Income Subsidy) include stocks, bonds and savings bonds.The home you live in and the land it is on, family heirlooms, wedding or engagement rings and life insurance policies DO NOT count as assets.
Keep in mind, choosing the right drug plan based on the prescriptions you take, is also extremely important and can save you thousands. If you would like a licensed agent to shop the different Medicare prescription drug plans in your area to see which one is right for you, call or emailInsurance Brokers Direct at 1.800.423.5511
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