Fewer 2024 stand-alone Medicare Part D (PDP) options with fewer PDPs qualifying for the Low-Income Subsidy (LIS) $0 premium

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 $0-premium LIS 2024 Medicare Part D plans include...

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 with the largest selection of LIS-qualifying $0 premium Medicare Part D plans is...
  

The state offering the largest selection of $0 premium LIS plans is Wisconsin whose residents will have seven (7) LIS plan options.

• The state with the largest number of LIS recipients is...

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.

• Two (2) states have no change in the number of LIS $0 premium plans being offered
  
  
• Twenty-two (22) states are losing one LIS $0 premium plan
  
  
• Twenty-seven (27) states are losing two (2) to five (5) LIS $0 premium plan
  
  
• Arizona, and New Jersey will each lose four (4) LIS qualifying plan options, and Illinois will lose five (5) LIS qualifying plan options.
  
  
• Wisconsin will to have the most LIS $0 premium plan options seven (7).

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.