Share of Cost, Low Income Subsidy
Low Income Subsidy (LIS)
Helps to pay for Medicare Part D for people with low to moderate income and resources. Also known as “Extra Help”.
There are two levels of the LIS:
Full Subsidy
- The full subsidy is for people who also get Medi-Cal coverage or who are in a Medicare Savings Program (MSP). You may also qualify if your countable income is less than $16,281 per year and your resources are less than $7,560, if you are single (the limits are higher for larger households).
- With the full subsidy, you will not have to pay a Part D premium or deductible, there will be no donut hole, and there may be lower co-payments.
Partial Subsidy
- The partial subsidy is for people who can’t get the full subsidy, but have less than $18,090 in countable income and less than $12,600 in resources, if you are single (the limits are higher for larger households).
- With the partial subsidy, you will pay 0%, 25%, 50%, or 75% of the Part D premium, depending on your income, and will only have to pay a $83 deductible before you get help paying for drugs. You will have to pay coinsurance and co-payments for your medications, but they will be lower than they would be without the partial LIS.
Note: Not all of your income and resources are counted when you apply for the Low Income Subsidy. You can apply for the LIS even if you are not sure that you will qualify.