skip navigation
[1] So in original. Section 1395w–22 (a)(6) of this title does not contain a subpar. (B).
§ 1395w–114. Premium and cost-sharing subsidies for low-income individuals
(a)
Income-related subsidies for individuals with income up to 150 percent of poverty line
(1)
Individuals with income below 135 percent of poverty line
In the case of a subsidy eligible individual (as defined in paragraph (3)) who is determined to have income that is below 135 percent of the poverty line applicable to a family of the size involved and who meets the resources requirement described in paragraph (3)(D) or who is covered under this paragraph under paragraph (3)(B)(i), the individual is entitled under this section to the following:
(A)
Full premium subsidy
An income-related premium subsidy equal to—
(C)
Continuation of coverage above the initial coverage limit
The continuation of coverage from the initial coverage limit (under paragraph (3) of section
1395w–102
(b) of this title) for expenditures incurred through the total amount of expenditures at which benefits are available under paragraph (4) of such section, subject to the reduced cost-sharing described in subparagraph (D).
(D)
Reduction in cost-sharing below out-of-pocket threshold
(i)
Institutionalized individuals
In the case of an individual who is a full-benefit dual eligible individual and who is an institutionalized individual or couple (as defined in section
1396a
(q)(1)(B) of this title), the elimination of any beneficiary coinsurance described in section
1395w–102
(b)(2) of this title (for all amounts through the total amount of expenditures at which benefits are available under section
1395w–102
(b)(4) of this title).
(ii)
Lowest income dual eligible individuals
In the case of an individual not described in clause (i) who is a full-benefit dual eligible individual and whose income does not exceed 100 percent of the poverty line applicable to a family of the size involved, the substitution for the beneficiary coinsurance described in section
1395w–102
(b)(2) of this title (for all amounts through the total amount of expenditures at which benefits are available under section
1395w–102
(b)(4) of this title) of a copayment amount that does not exceed $1 for a generic drug or a preferred drug that is a multiple source drug (as defined in section
1396r–8
(k)(7)(A)(i) of this title) and $3 for any other drug, or, if less, the copayment amount applicable to an individual under clause (iii).
(iii)
Other individuals
In the case of an individual not described in clause (i) or (ii), the substitution for the beneficiary coinsurance described in section
1395w–102
(b)(2) of this title (for all amounts through the total amount of expenditures at which benefits are available under section
1395w–102
(b)(4) of this title) of a copayment amount that does not exceed the copayment amount specified under section
1395w–102
(b)(4)(A)(i)(I) of this title for the drug and year involved.
(2)
Other individuals with income below 150 percent of poverty line
In the case of a subsidy eligible individual who is not described in paragraph (1), the individual is entitled under this section to the following:
(A)
Sliding scale premium subsidy
An income-related premium subsidy determined on a linear sliding scale ranging from 100 percent of the amount described in paragraph (1)(A) for individuals with incomes at or below 135 percent of such level to 0 percent of such amount for individuals with incomes at 150 percent of such level.
(C)
Continuation of coverage above the initial coverage limit
The continuation of coverage from the initial coverage limit (under paragraph (3) of section
1395w–102
(b) of this title) for expenditures incurred through the total amount of expenditures at which benefits are available under paragraph (4) of such section, subject to the reduced coinsurance described in subparagraph (D).
(D)
Reduction in cost-sharing below out-of-pocket threshold
The substitution for the beneficiary coinsurance described in section
1395w–102
(b)(2) of this title (for all amounts above the deductible under subparagraph (B) through the total amount of expenditures at which benefits are available under section
1395w–102
(b)(4) of this title) of coinsurance of “15 percent” instead of coinsurance of “25 percent” in section
1395w–102
(b)(2) of this title.
(E)
Reduction of cost-sharing above annual out-of-pocket threshold
Subject to subsection (c) of this section, the substitution for the cost-sharing imposed under section
1395w–102
(b)(4)(A) of this title of a copayment or coinsurance not to exceed the copayment or coinsurance amount specified under section
1395w–102
(b)(4)(A)(i)(I) of this title for the drug and year involved.
(3)
Determination of eligibility
(A)
Subsidy eligible individual defined
For purposes of this part, subject to subparagraph (F), the term “subsidy eligible individual” means a part D eligible individual who—
(B)
Determinations
(i)
In general
The determination of whether a part D eligible individual residing in a State is a subsidy eligible individual and whether the individual is described in paragraph (1) shall be determined under the State plan under subchapter XIX of this chapter for the State under section
1396u–5
(a) of this title or by the Commissioner of Social Security. There are authorized to be appropriated to the Social Security Administration such sums as may be necessary for the determination of eligibility under this subparagraph.
(ii)
Effective period
Determinations under this subparagraph shall be effective beginning with the month in which the individual applies for a determination that the individual is a subsidy eligible individual and shall remain in effect for a period specified by the Secretary, but not to exceed 1 year.
(iii)
Redeterminations and appeals through medicaid
Redeterminations and appeals, with respect to eligibility determinations under clause (i) made under a State plan under subchapter XIX of this chapter, shall be made in accordance with the frequency of, and manner in which, redeterminations and appeals of eligibility are made under such plan for purposes of medical assistance under such subchapter.
(iv)
Redeterminations and appeals through Commissioner
With respect to eligibility determinations under clause (i) made by the Commissioner of Social Security—
(v)
Treatment of medicaid beneficiaries
Subject to subparagraph (F), the Secretary—
(I)
shall provide that part D eligible individuals who are full-benefit dual eligible individuals (as defined in section
1396u–5
(c)(6) of this title) or who are recipients of supplemental security income benefits under subchapter XVI of this chapter shall be treated as subsidy eligible individuals described in paragraph (1); and
(II)
may provide that part D eligible individuals not described in subclause (I) who are determined for purposes of the State plan under subchapter XIX of this chapter to be eligible for medical assistance under clause (i), (iii), or (iv) of section
1396a
(a)(10)(E) of this title are treated as being determined to be subsidy eligible individuals described in paragraph (1).
Insofar as the Secretary determines that the eligibility requirements under the State plan for medical assistance referred to in subclause (II) are substantially the same as the requirements for being treated as a subsidy eligible individual described in paragraph (1), the Secretary shall provide for the treatment described in such subclause.
(C)
Income determinations
For purposes of applying this section—
(i)
in the case of a part D eligible individual who is not treated as a subsidy eligible individual under subparagraph (B)(v), income shall be determined in the manner described in section
1396d
(p)(1)(B) of this title, without regard to the application of section
1396a
(r)(2) of this title; and
(D)
Resource standard applied to full low-income subsidy to be based on three times SSI resource standard
The resources requirement of this subparagraph is that an individual’s resources (as determined under section
1382b of this title for purposes of the supplemental security income program) do not exceed—
(i)
for 2006 three times the maximum amount of resources that an individual may have and obtain benefits under that program; and
(ii)
for a subsequent year the resource limitation established under this clause for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.
Any resource limitation established under clause (ii) that is not a multiple of $10 shall be rounded to the nearest multiple of $10.
(E)
Alternative resource standard
(i)
In general
The resources requirement of this subparagraph is that an individual’s resources (as determined under section
1382b of this title for purposes of the supplemental security income program) do not exceed—
(I)
for 2006, $10,000 (or $20,000 in the case of the combined value of the individual’s assets or resources and the assets or resources of the individual’s spouse); and
(II)
for a subsequent year the dollar amounts specified in this subclause (or subclause (I)) for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.
Any dollar amount established under subclause (II) that is not a multiple of $10 shall be rounded to the nearest multiple of $10.
(ii)
Use of simplified application form and process
The Secretary, jointly with the Commissioner of Social Security, shall—
(iii)
Documentation and safeguards
Under such process—
(I)
the application form shall consist of an attestation under penalty of perjury regarding the level of assets or resources (or combined assets and resources in the case of a married part D eligible individual) and valuations of general classes of assets or resources;
(iv)
Methodology flexibility
The Secretary may permit a State in making eligibility determinations for premium and cost-sharing subsidies under this section to use the same asset or resource methodologies that are used with respect to eligibility for medical assistance for medicare cost-sharing described in section
1396d
(p) of this title so long as the Secretary determines that the use of such methodologies will not result in any significant differences in the number of individuals determined to be subsidy eligible individuals.
(F)
Treatment of territorial residents
In the case of a part D eligible individual who is not a resident of the 50 States or the District of Columbia, the individual is not eligible to be a subsidy eligible individual under this section but may be eligible for financial assistance with prescription drug expenses under section
1396u–5
(e) of this title.
(4)
Indexing dollar amounts
(A)
Copayment for lowest income dual eligible individuals
The dollar amounts applied under paragraph (1)(D)(ii)—
(i)
for 2007 shall be the dollar amounts specified in such paragraph increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year; or
(ii)
for a subsequent year shall be the dollar amounts specified in this clause (or clause (i)) for the previous year increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.
Any amount established under clause (i) or (ii), that is based on an increase of $1 or $3, that is not a multiple of 5 cents or 10 cents, respectively, shall be rounded to the nearest multiple of 5 cents or 10 cents, respectively.
(B)
Reduced deductible
The dollar amount applied under paragraph (2)(B)—
(i)
for 2007 shall be the dollar amount specified in such paragraph increased by the annual percentage increase described in section
1395w–102
(b)(6) of this title for 2007; or
(ii)
for a subsequent year shall be the dollar amount specified in this clause (or clause (i)) for the previous year increased by the annual percentage increase described in section
1395w–102
(b)(6) of this title for the year involved.
Any amount established under clause (i) or (ii) that is not a multiple of $1 shall be rounded to the nearest multiple of $1.
(b)
Premium subsidy amount
(1)
In general
The premium subsidy amount described in this subsection for a subsidy eligible individual residing in a PDP region and enrolled in a prescription drug plan or MA–PD plan is the low-income benchmark premium amount (as defined in paragraph (2)) for the PDP region in which the individual resides or, if greater, the amount specified in paragraph (3).
(2)
Low-income benchmark premium amount defined
(A)
In general
For purposes of this subsection, the term “low-income benchmark premium amount” means, with respect to a PDP region in which—
(i)
all prescription drug plans are offered by the same PDP sponsor, the weighted average of the amounts described in subparagraph (B)(i) for such plans; or
(ii)
there are prescription drug plans offered by more than one PDP sponsor, the weighted average of amounts described in subparagraph (B) for prescription drug plans and MA–PD plans described in section
1395w–21
(a)(2)(A)(i) of this title offered in such region.
(B)
Premium amounts described
The premium amounts described in this subparagraph are, in the case of—
(i)
a prescription drug plan that is a basic prescription drug plan, the monthly beneficiary premium for such plan;
(ii)
a prescription drug plan that provides alternative prescription drug coverage the actuarial value of which is greater than that of standard prescription drug coverage, the portion of the monthly beneficiary premium that is attributable to basic prescription drug coverage; and
(iii)
an MA–PD plan, the portion of the MA monthly prescription drug beneficiary premium that is attributable to basic prescription drug benefits (described in section
1395w–22
(a)(6)(B)(ii) of this title [1]).
(c)
Administration of subsidy program
(1)
In general
The Secretary shall provide a process whereby, in the case of a part D eligible individual who is determined to be a subsidy eligible individual and who is enrolled in a prescription drug plan or is enrolled in an MA–PD plan—
(A)
the Secretary provides for a notification of the PDP sponsor or the MA organization offering the plan involved that the individual is eligible for a subsidy and the amount of the subsidy under subsection (a) of this section;
(B)
the sponsor or organization involved reduces the premiums or cost-sharing otherwise imposed by the amount of the applicable subsidy and submits to the Secretary information on the amount of such reduction;
(C)
the Secretary periodically and on a timely basis reimburses the sponsor or organization for the amount of such reductions; and
In applying subparagraph (C), the Secretary shall compute reductions based upon imposition under subsections (a)(1)(D) and (a)(2)(E) of this section of unreduced copayment amounts applied under such subsections.
(d)
Relation to medicaid program
For special provisions under the medicaid program relating to medicare prescription drug benefits, see section
1396u–5 of this title.
[1] So in original. Section 1395w–22 (a)(6) of this title does not contain a subpar. (B).
Search this title:
Notes
5 Update(s)
Parallel authorities (CFR)
PDF (7 pages)
Title 42 RSS
Notes
5 Update(s)
Parallel authorities (CFR)
PDF (7 pages)
Title 42 RSS
Donations cover only 20% of our costs.
LII has no control over and does not endorse any external Internet site that contains links to or references LII.