What does the term "low-income subsidy" mean in Medicare?

The term "low-income subsidy" refers specifically to financial assistance provided to help individuals with limited income pay for their Part D drug costs under Medicare. This subsidy is designed to reduce the out-of-pocket expenses that beneficiaries would otherwise face when obtaining prescription medications. It is intended for individuals who meet certain income and resource limits, making healthcare more accessible and affordable for those who need it the most.

By understanding this term, beneficiaries can better navigate their Medicare options and take advantage of the support available to them for prescription drug costs. This assistance can significantly lower premiums, deductibles, and co-payments, ensuring that low-income individuals can receive necessary medications without overwhelming financial burdens.