America’s poorest seniors could soon find it much harder to get the necessary medicines.
That’s because Medicare’s Low-Income Subsidy program—which provides millions of seniors with prescription drug coverage with no monthly premium—is eroding. Recent changes made in the Inflation Reduction Act are partly to blame.
The number of “benchmark” LIS plans—which offer coverage without a monthly premium—plummeted 34% last year alone. As a result of some plans being discontinued or increasing their monthly premium, over 1.3 million seniors were reassigned to a different plan by Centers for Medicare & Medicaid Services (CMS).
Many other seniors had no choice but to opt for more expensive alternative plans that require monthly premiums, jeopardizing their access to life-saving medicines—or reducing what they can spend on necessities like groceries and rent.
The Low-Income Subsidy program is a lifeline for roughly 13 million Americans. Low-income seniors are disproportionately burdened by chronic health conditions like diabetes and heart disease, so whether they can afford prescriptions can be a matter of life and death. Only seniors whose annual earnings are less than 150% of the federal poverty line—about $22,500 for a single person or $30,500 for a couple—qualify for the program.
By the numbers, communities of color are primarily reliant on these subsidies. Combined, Black and Hispanic beneficiaries make up just 20% of Medicare drug plan enrollees. However, within the subsidy program, Black and Hispanic beneficiaries total 37% of enrollees.
Low-income subsidy enrollees are increasingly having to turn to higher-premium plans. Since last year, the number of people who now have to pay premiums has increased by more than one million.
Just as concerning is the fact that premiums across all Medicare prescription drug plans are rising. Average monthly premiums are projected to increase by at least 21% by the end of this year.
It’s a concerning situation. Without swift action from the CMS and Congress, America’s poorest seniors risk losing access to the medicines they need to live healthy lives.
Dr. Yanira Cruz is the president and CEO of the National Hispanic Council on Aging.
