What You Need to Know
- Medicare Extra Help is also known as the Medicare Part D Low-Income Subsidy program.
- The income cut-off for a single filer is $19,320, and the asset cut-off for a single filer is $14,790.
- The value of a home and vehicle are not included in the asset calculations.
Prescription drug prices are the most visible sign to consumers of the high cost of health care, and a study from the University of Pittsburgh’s Center for Pharmaceutical Policy and Prescribing found that the price for brand-name drugs increased, on average, by 159% between 2007 and 2018. Pharmaceutical companies continued raising the prices of more than 800 drugs during the pandemic, increasing the cost of nearly 70 drugs by an average of 3.1% in July 2020.
Some Medicare enrollment questions come from beneficiaries who need help paying for their prescriptions.
Here’s one that’s probably on the minds of many of your clients who have, or soon will have, Medicare coverage, especially in light of the economic challenges — and surge in drug prices — experienced during the pandemic.
My prescriptions are expensive. Are there any programs to help pay for them?
Yes! Medicare Extra Help is a subsidy that helps to lower the cost of your drug coverage through Medicare Part D. The coverage remains the same, but those who qualify pay, on average, $5,000 less per year. This program is also called the Part D Low-Income Subsidy (LIS) program, because it was created for people with limited financial resources.