The Low Income Subsidy (LIS) federal program helps Medicare Part D beneficiaries pay for costs associated with their Part D prescription drug plan. To be eligible to participate in the program, the insured must meet certain asset and income levels which can change yearly, and they must also have Medicare Parts A & B. Part D plan premiums can be covered from 25 to 100 percent, depending on where the recipient falls on the Federal Poverty Level (FPL). For 2021, yearly gross income limits in California are $19,560 for individuals and $26,370 for married couples.
Full-benefit dual eligible, those who receive Supplemental Security Income, and those enrolled in a Medicare Savings Plan automatically qualify for the program. Late enrollment penalties may also be reduced or eliminated once enrolled. Consumers who become eligible for LIS have a Special Election Period to enroll which may be used once per quarter from January through September.