A closer look at the Medicare part D low-income benchmark premium: how low can it go?

Abstract

This issue brief explains how the Medicare Part D low income benchmark premium is calculated, what factors influence the level of the low-income benchmark premium in any given year, and the implications of the benchmark amount for Medicare drug plans and beneficiaries as it changes from year to year. The paper provides a simplified, two-year example of how the low-income benchmark premium is calculated in order to illustrate the key factors that influence it.