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Medicare LIS Low Income Subsidy or Extra Help.

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Welch Insurance understands Medicare and how to help you select additional coverage.

Medicare LIS Low Income Subsidy or Extra Help.

The LIS Low Income Subsidy, or Extra Help, is a program designed to assist individuals with limited income and resources in paying for their Medicare prescription drug costs. Understanding the eligibility requirements, the application process and the coverage provided by the LIS is crucial for those who may benefit from this important assistance. There may be Advantage Plans Part C that work with LIS to give you additional benefits.

Eligibility for LIS Low Income Subsidy

To qualify for the LIS Low Income Subsidy, individuals must meet specific income and resource criteria. Here’s a comprehensive breakdown of the eligibility requirements:

  • Income: The income limit for the LIS is adjusted annually. As of 2024, the income limit for individuals is set at $22,590 per year, and for couples, it is $17,220 per year. It’s important to note that not all types of income are counted, such as Supplemental Security Income (SSI) benefits.
  • Resources: The resource limit for the LIS is also adjusted annually. As of 2024, the resource limit is $17,220 for individuals and $34,360 for couples.
  • What counts towards Resources? Money Checking, Savings, and Retirement Account Stocks and Bonds
    • What does not count towards resources?
      • Your home
      • One car
      • Burial plot
      • Up to $1,500 for burial expenses if you have put the money aside.
      • Furniture
      • Other household and personal items
  • Medicare Part D Enrollment: Eligible individuals must be enrolled in, or have applied for, Medicare Part D.

Application Process for LIS Low Income Subsidy

Applying for the LIS Low Income Subsidy is through several methods, online, by phone, or by submitting a paper application. Here are the steps to apply for the LIS:

 1. Online Application: Visit the Social Security Administration’s website and complete the “Application for Extra Help with Medicare Prescription Drug Plan Costs” form.

 2. Phone Application: Contact the Social Security Administration at 1-800-772-1213 to apply over the phone.

 3. Paper Application: Download and print the “Application for Extra Help with Medicare Prescription Drug Plan Costs” form from the Social Security Administration’s website, fill it out, and mail it to the address provided on the form.

 4. The required Information: When applying, provide information about your income, resources, and current prescription drug coverage. 

  • Coverage Provided by LIS Low Income Subsidy. The LIS Low Income Subsidy offers substantial coverage for prescription drug costs under Medicare Part D. Here’s an overview of the coverage provided.
  • Premium and Deductible Assistance**: The LIS helps cover some or all of the monthly premium and annual deductible for Medicare Part D prescription drug plans.
  • Reduced Co-payments: Individuals who qualify for the LIS pay reduced co-payments or coinsurance for their prescription drugs, helping to make essential medications more affordable.
  • Coverage Gap Assistance: The LIS also assists individuals who reach the Medicare Part D coverage gap, commonly known as the “donut hole,” by reducing out-of-pocket costs for prescription drugs.

Conclusion:

The LIS Low Income Subsidy is a critical program. It provides much-needed financial assistance to individuals with limited income and resources, helping them afford essential prescription medications. By understanding the eligibility requirements, the application process, and the coverage provided by the LIS, eligible individuals can take the necessary steps to access this valuable support.

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