Q:

What is a low-income subsidy?

A:

Quick Answer

The low-income subsidy program is available through Medicare to help eligible individuals with limited income receive help paying for Medicare Part D prescription drug costs, says eHealth Medicare. Medicare beneficiaries on the low-income subsidy program get assistance in paying for Part D monthly premiums, deductibles, coinsurance and copayments.

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Full Answer

To apply for the low-income subsidy program, an applicant needs to fill out the required form with the Social Security Administration, advises eHealth Medicare. After the application has been submitted, Social Security reviews it and sends a notification to advise the applicant if he is eligible for the program. If the applicant does qualify but is not enrolled in a Medicare Part D prescription drug plan, the applicant can sign up for the plan at that time. Individuals enrolled in this program do not have a gap in their prescription drug coverage.

The Social Security Administration has an income level that applicants must meet in order to qualify, explains eHealth Medicare. Assets that the Social Security Administration takes into account are cash and bank accounts, real estate outside of the applicant's primary residence, stocks and bonds, U.S. savings bonds, IRAs, and mutual funds.

When calculating eligibility for the low-income subsidy, the applicant's primary residence, car and insurance policy are not considered, says eHealth Medicare.

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