How does the low-income premium subsidy work for beneficiaries who choose to enroll in an enhanced Part D plan?

Low-income subsidy beneficiaries may choose to enroll in an enhanced Part D plan. They will still receive the low-income subsidy benefits. However, they must pay the portion of the premium that covers the "enhanced" benefits. For example, if the monthly premium for an enhanced plan is $40.00, but the cost of the standard benefit is $10.00, then beneficiaries must pay the remaining portion of the premium—$30.00—out-of-pocket. The plan finder does this calculation automatically.

HAP Tool for More Information: http://www.hapnetwork.org/medicare-drug-coverage/aep-toolkit.html#Enrollment_and_Disenrollment

Source: 42 CFR § 423.780 (http://www.law.cornell.edu/cfr/cfr.php?title=42&type=chapter&value=4)

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