Low Income Subsidy (LIS, Extra Help)
The Low Income Subsidy (LIS), also known as Extra Help, is a federal program that helps Medicare beneficiaries with limited income and resources pay for their Medicare Part D prescription drug costs. This includes help with monthly premiums, annual deductibles, and copayments.
Key Aspects (2026)
For those who qualify, the program provides substantial savings:
- Premiums: The monthly Part D premium is often reduced to $0.
- Annual Deductible: The standard Part D deductible ($615) is reduced to $0.
- Drug Copays: Beneficiaries pay no more than $5.10 for each generic drug and $12.65 for each brand-name drug.
- $0 Cost-Sharing: Once Part D’s total out-of-pocket drug costs reach the $2,100 cap, the beneficiary pays $0 for all covered drugs for the rest of the year.
- No Late Penalties: Any Part D late enrollment penalties are permanently waived for those who qualify.
Eligibility
Individuals automatically qualify/do not need to apply for LIS if they already receive:
- Full Medicaid coverage (Dual Eligible).
- Supplemental Security Income (SSI).
- Help from a Medicare Savings Program (MSP) to pay Part B premiums.
Income and Asset Limits (2026)
For those who do not qualify automatically, eligibility is based on annual income and total resources/assets:
*Income limits include a $20 monthly income disregard.
**Resource limits include $1,500 per person set aside for burial expenses.
Resource/Asset includes cash, bank accounts, stocks, bonds, and real estate (other than a primary residence). It does not count:a primary home, one vehicle, and personal household items.
How to Apply
- Online: SSA: Online Extra Help Application
- Call: 1-800-772-1213 (TTY: 1-800-325-0778).
- Visit: Local SSA office support available.
- Review Notice: After applying, the Social Security Administration will mail a letter indicating whether the individual qualifies and the level of assistance they will receive.
- Automatic Enrollment: If a beneficiary is found eligible but does not have a Part D plan, Medicare will often automatically enroll them in one to ensure they receive the benefit.
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