Overview of Extra Help Income Limits
The extra help income limits for 2023, also known as the Low-Income Subsidy (LIS), was established by the Centers for Medicare & Medicaid Services (CMS) to help individuals and families with low incomes pay for their Medicare Part D prescription drug coverage. Extra help is available to individuals and families with incomes up to 135 percent of the federal poverty level. For example, an individual with an annual income of $17,235 in 2023 would be eligible for extra help. In addition, those with incomes between 135 and 150 percent of the federal poverty level will be eligible for a partial subsidy.
Eligibility Requirements
To be eligible for extra help, a person must meet certain requirements. In addition to having an income of up to 135 percent of the federal poverty level, one must also be a U.S. citizen or legal permanent resident. In addition, one must have resources that do not exceed $14,390 for an individual or $29,160 for a couple. Resources include savings, investments, and real estate, but do not include a home, car, or personal belongings.
How to Apply
To apply for extra help, one must complete the Application for Extra Help with Medicare Prescription Drug Plan Costs. This application can be found on the Social Security Administration website or at a local Social Security office. In addition, one must submit proof of income, such as pay stubs, tax returns, or bank statements. One must also submit proof of U.S. citizenship or legal permanent residency. Once the application is submitted, it will be reviewed and the applicant will be notified of the outcome.
Benefits of Extra Help
Once approved for extra help, an individual will receive assistance with the costs of their Medicare Part D prescription drug coverage. This assistance can include coverage of premiums and copayments. In addition, an individual may also be eligible for coverage of the Medicare Part D deductible, which is the amount that must be paid before the plan begins to cover the costs of prescription drugs.
How Much Extra Help Can Be Received?
The amount of extra help an individual receives depends on their income and resources. Those with incomes up to 135 percent of the federal poverty level will receive the full extra help amount, which covers the cost of premiums, copayments, and the deductible. Those with incomes between 135 and 150 percent of the federal poverty level will receive a partial subsidy, which covers a portion of the premiums, copayments, and deductible.
Disadvantages of Extra Help
Although extra help can provide much-needed assistance with prescription drug costs, there are certain disadvantages to be aware of. First, an individual must reapply for extra help each year. This means that their income and resources must be re-evaluated each year to determine if they are still eligible for extra help. In addition, some individuals may not qualify for extra help because their incomes or resources exceed the limits established by the Centers for Medicare & Medicaid Services.
Conclusion
Extra help income limits for 2023 can help individuals and families with low incomes pay for their Medicare Part D prescription drug coverage. To be eligible for extra help, one must meet certain income and resource requirements. The amount of extra help an individual receives depends on their income and resources. Although extra help can provide much-needed assistance with prescription drug costs, there are certain disadvantages to be aware of.