Based on the Centers for Medicare and Medicaid Services (CMS)
recently released 2023
Medicare Part D prescription drug plan (PDP) landscape data, although there are more 2023 stand-alone Medicare Part D plan (PDP) plan options, the total number of 2023 PDPs qualifying for the Low-Income Subsidy (LIS) $0 premium will decrease, with some states offering fewer $0 premium LIS-qualifying 2023 drug plan options
The total number of stand-alone 2023 Medicare Part D prescription drug
plans across the country will increase 4.6% to 801
plans from 766 plans currently offered in 2022. However, the total number of $0 premium LIS-qualifying PDPs
decreased in 2023 (see second chart below) from 198 qualifying plans in 2022 to 191 LIS plans in 2023.
In addition, the number of unique 2023 Medicare Part D plans that qualify for the LIS $0 premium has
fallen to nine (9) prescription drug plans from eleven (11) qualifying plans in 2022 - the lowest level
since the start of the Medicare Part D program.
The good news is that many states will offer
the same number of
Medicare Part D plans qualify for the Low-Income Subsidy (LIS) $0 premium
benchmark in 2023 as compared to 2022.
Overall, thirteen (13) states will lose one (1) LIS qualifying plan option, thirty-six (36) states will continue to have the same number of options, and
two (2) states will add one (1) LIS $0 premium qualifying Medicare Part D plan.
The state with the smallest selection of 2023 Medicare Part D plans qualifying for the
LIS $0 premium is
New York with three (3) plans followed closely by
California,
Florida, and
Ohio -- all offering only four (4) LIS $0-premium qualifying Medicare Part D plans.
The state offering the largest selection of $0 premium LIS plans continues to be Arizona whose residents will have eight (8) LIS plan options.
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Over the past few years, the number of Medicare Part D plans qualifying for the $0-premium Low-Income Subsidy stayed pretty consistent, with an average of between 14 to 16 plans each year.
However, in 2022, there was a meaningful reduction in the number of LIS-qualifying plans and 2023 follows with a further reduction.
Question: Which Medicare Part D plans qualify for the full Low-Income Subsidy $0 premium in my state?
Each year, insurance companies adjust their Medicare Part D plan premiums, and some
Medicare Part D plans raise their premiums and move their prescription drug plans above the
state low-income subsidy (LIS) benchmark limits,
while other Part D plan sponsors lower their monthly premiums so that their plans can qualify
for a state’s $0 premium.
This means that the number of Medicare Part D plans qualifying for the LIS $0 premium can
change each year. Click on the 2023 premium for your state in our
state low-income subsidy (LIS) benchmark limits
article to see qualifying plans in your state.
More on Medicare Part D Extra Help
The Medicare Part D Extra Help or the Low-Income Subsidy (LIS) is a federal program helping low-income Medicare beneficiaries pay a portion of their Medicare Part D prescription drug costs. Based on a person’s income and financial resources, the Extra Help or LIS program pays all or part of a person’s monthly Medicare Part D plan premiums and a significant portion of the beneficiary’s medication costs.
If you qualify for the full-LIS program, you can choose a Medicare Part D plan that qualifies
for your state’s $0 monthly premium or allow yourself to be automatically enrolled in a
plan that qualifies for the $0 premium. If you enroll in a Medicare Part D plan that does
not qualify for the $0 premium, you will pay a portion of the premium. If you choose your own Medicare Part D plan, the monthly premium
amount you will pay is shown under the "Benefit Details" button on our Medicare Part D plan finder.
Please note, our Medicare Part D plan finder allows you to view the premiums
of a Medicare Part D plan based on whether you receive full - or partial-LIS benefits.
The PDP-Finder.com feature looks like this:
Because of changes in the annual Medicare Part D plan premiums and state LIS benchmarks,
some full low-income subsidy qualifying Medicare beneficiaries (such as people who are
Medicare/Medicaid dual-eligible beneficiaries) may be automatically reassigned to new
2023 Medicare Part D plans that will still qualify for the $0 monthly premium.
However, Extra Help recipients who "chose" their own plan in the past
(these beneficiaries are also referred to as "choosers") may
not be auto-reassigned to a new
2023 LIS qualifying plan and may need to select a new
2023 Medicare Part D plan or Medicare Advantage plan that includes drug coverage that still
meets the $0 monthly premium threshold (or pay the small monthly premium).
As reference, you can use our
PDP-Finder to see LIS qualifying plans
in your state. Be sure to select "Yes, show only plans that qualify for $0 premium". Click here to see an example for Texas.
Not sure where to begin?
For more information on Medicare Part D plans that qualify for your state's low-income $0 premium benchmark, please call Medicare toll-free at 1-800-633-4227 and speak with a Medicare representative to learn more about your Medicare Part D and Medicare Advantage plan options.