What kind of financial assistance does a consumer get if they qualify for Low Income Subsidy (LIS)?

• A. Lower or no monthly plan premiums and lower or no copayments.
• B. Higher premiums and higher copays.
• C. No change to costs.
• D. Only applies to hospital visits.

Answer: (A)

Low Income Subsidy helps with the costs of Medicare Part D prescription drug coverage for people with limited income and resources. If you qualify, you pay much less for your Part D plan—often a reduced monthly premium or none at all—and your out-of-pocket costs for prescription drugs are lowered, sometimes to zero copays. The subsidy doesn’t change costs for hospital services, which are covered separately by other parts of Medicare. So the benefit described—reduced or eliminated monthly premiums and reduced copayments for drugs—best represents what LIS provides.