On September 26, 2023, the Centers for Medicare and Medicaid Services (CMS) released
the 2024
Medicare Part D prescription drug plan landscape data and "announced that average premiums, benefits, and plan choices for
Medicare Advantage and the Medicare Part D prescription drug program
will remain stable in 2024."
Our preliminary analysis of the Medicare Part D prescription drug plan (PDP) landscape shows significantly fewer 2024 stand-alone Medicare Part D PDP options and
the total number of 2024 PDPs qualifying for the Low-Income Subsidy (LIS) $0 premium will also decrease to a historic low,
with all but two states offering fewer $0 premium LIS-qualifying 2024 drug plan options.
The total number of stand-alone 2024 Medicare Part D prescription drug
plans across the country
will decrease 11.5% to 709
plans from 801 plans currently offered in 2023. The total number of PDPs offered across the country is the lowest since the 2006 start of the Medicare Part D program. In addition, the total number of $0 premium LIS-qualifying PDPs
decreased to its lowest level in 2024 (see chart below) from 191 qualifying plans in 2023 to 126 LIS $0 premium plans in 2024.
Overall,
two (2) states will continue to have the same number of options,
twenty-two (22) states will lose one (1) LIS qualifying plan option, and
twenty-seven (27) states will lose two (2) to five (5) LIS qualifying plan options.
The states with the smallest selection of 2024 Medicare Part D plans qualifying for the
LIS $0 premium are
Florida,
Illinois,
Missouri,
Nevada,
New Jersey,
New York,
Ohio, and
Texas
-- each offering only two (2) LIS $0-premium qualifying Medicare Part D plans.
The state offering the largest selection of $0 premium LIS plans is Wisconsin whose residents will have seven (7) 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 somewhat consistent, averaging between 14 to 16 plans each year.
However, in 2022 and 2023, there was a meaningful reduction in the number of LIS-qualifying plans - and 2024 follows with a further reduction to the historically lowest total number of LIS $0 premium plans.
More on the Medicare Part D Extra Help or Low-Income Subsidy (LIS) program
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. The Extra Help or LIS program pays the beneficiary’s monthly
Medicare Part D plan premiums and a significant portion of the beneficiary’s medication costs.
If you qualify for the 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 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 low-income subsidy qualifying Medicare beneficiaries (such as people who are
Medicare/Medicaid dual-eligible beneficiaries) may be automatically reassigned to new
2024 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
2024 LIS qualifying plan and may need to select a new
2024 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.