Many Low-Income Subsidy Clients May Be Paying Premiums

According to a report from the Kaiser Family Foundation, 1.9 million Low-Income Subsidy (LIS or “Extra Help”) recipients are enrolled in Prescription Drug Plans in 2013 that will not qualify as benchmark plans in 2014. This number represents about one in four LIS recipients. Because their plans do not have benchmark status, a status that can change yearly depending on plan bids to CMS, these LIS beneficiaries will have to pay premiums in 2014 if they do not change plans. Of those affected, roughly 72 percent are already paying premiums because their plan premium was above benchmark in 2013. About 470,000 LIS enrollees will pay premiums of at least $20 per month and nearly 81,000 will pay premiums of $50 per month unless they change plans.

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