What is Low Income Subsidy for Medicare Prescription Drug Coverage?
September 23, 2020 | Kari Mellone
Prescription drug costs can be a significant out-of-pocket expense. However, you may be eligible for a government program that helps pay for Medicare Part D prescription drug costs. In this blog, you’ll learn how this works.
What is Low Income Subsidy/Extra Help?
The low income subsidy for prescription drug costs is also called “Extra Help.” Under this program, beneficiaries get assistance in paying for their Part D monthly premium, annual deductible, coinsurance and copays. This subsidy also helps cover any gaps in Medicare coverage – also known as the Medicare “donut hole.” Learn more in our blog: The Donut Hole Or Coverage Gap: What You Need To Know.
Who is eligible?
You are eligible to apply if you are:
- Currently enrolled in Medicare Part A and or Part B
- You live in the U.S. or District of Columbia
- Your combined total assets are less than $18,000, not including your home or car
- Your monthly income less than or equal to $1,615 single/$2,175 couple
Some Medicare beneficiaries automatically qualify for the low-income subsidy and do not have to apply. If you have Medicare and Supplemental Security Income (SSI) or Medicare and Medicaid, you automatically receive the subsidy.
You also may be able to get help from Minnesota state with other Medicare costs under other Medicare Savings Programs. By completing form i-1020 to enroll in the Extra Help program, you are starting your application process for a Medicare Savings Program. SSA then sends information to your State to contact you to apply for a Medicare Savings Program. Within the application you are given the choice to opt out, if preferred.
What’s Next?
If you are not automatically enrolled in the Extra Help program, but believe you are eligible, complete the self-guided application through the Social Security website, or follow this link to the Extra Help Application (form i-1020). If you are unsure about your eligibility, or would like help with the application process, contact Twin City Underwriters at 1-800-507-6778 or send us a message.
