What is the Extra Help (Low-Income Subsidy) program?

• A. A program to assist with hospital costs across all plans.
• B. A program offering premium rebates for all enrollees.
• C. A program that provides free health care to all seniors.
• D. A program that helps pay Part D premiums, deductibles, and copays for low-income individuals.

Answer: (D)

Extra Help, also known as the Low-Income Subsidy, is a Medicare program designed to reduce the cost of prescription drugs for people with limited income and resources. It specifically helps with Part D costs by paying or lowering the monthly premiums, the annual deductibles, and the copayments or coinsurance for medications. The exact assistance varies based on income and assets, and it can range from substantial help to very small or no deductible for those who qualify. This program does not cover hospital or general medical costs, and it isn’t a universal benefit—only individuals who meet the income and resource thresholds receive the subsidy. If you qualify, you’ll still enroll in a Part D plan, but your out-of-pocket costs under that plan are significantly reduced.