Many seniors struggle with the high cost of healthcare. Recent research published in Health Affairs finds that Medicare enrollees near the poverty line may forgo essential healthcare because of the cost. However, for many seniors, there may be a better option. Financial assistance is available for qualifying beneficiaries. The 2021 limits have been announced, so this is a good time to make sure your clients are getting the aid they deserve.
2021 Poverty Guidelines
Every year, the Department of Health and Human Services must update the poverty guidelines. The calculations are based on changes in the Consumer Price Index for All Urban Consumers, or the CPI-U. The increase for 2021 reflects the 1.2% price increase that occurred between 2019 and 2020.
The 2021 poverty guidelines for the 48 contiguous states and the District of Columbia are as follows:
- $12,880 a year for a family of one
- $17,420 a year for a family of two
- $21,960 a year for a family of three
- $26,500 a year for a family of four
- $31,040 a year for a family of five
- $35,580 a year for a family of six
- $40,120 a year for a family of seven
- $44,660 a year for a family of eight
Limits are higher in Alaska and Hawaii. For larger families, $4,540 can be added for each additional person.
Poverty Guidelines and Medicare Programs
The poverty guidelines are used along with resource limits to determine eligibility for certain Medicare programs. When calculating resources, money in checking or savings accounts, stocks and bonds should be included. Certain other resources, including the enrollee’s house, furniture, household items, personal items, one car, a burial plot and up to $1,500 set aside for burial expenses, should not be included.
Below you’ll find a quick recap of the 2021 Resource Limits charts from CMS and or you can click to view the 2021-LIS-Resource-Limits-Memo.
Resource Limits for Determining LIS Eligibility
|
LIS |
Marital Status |
2020 LIS Resource Limit |
2020 LIS Resource Limit with Burial Expenses |
2021 LIS Resource Limit |
2021 LIS Resource Limit with Burial Expenses |
| Full Subsidy |
Single | $7,860 | $9,360 | $7,970 | $9,470 |
| Full Subsidy |
Married | $11,800 | $14,800 | $11,960 | $14,960 |
| Partial LIS |
Single | $13,110 | $14,610 | $13,290 | $14,790 |
| Partial LIS |
Married | $26,160 | $29,160 | $26,520 | $29,520 |
2021 Maximum LIS Beneficiary Cost-Sharing Table
| Low-Income Subsidy Category | Deductible | Copayment up to Out-of-Pocket Threshold2 | Copayment above Out-of-Pocket Threshold2 |
| Institutionalized Full-Benefit Dual Eligible; or Beneficiaries Receiving Home and Community-Based Services | $0 | $0 | $0 |
| Full-Benefit Dual Eligible ≤ 100% FPL | $0 | $1.30 generic, $4.00 brand |
$0 |
| Full-Benefit Dual Eligible > 100% FPL | $0 | $3.70 generic, $9.20 brand |
$0 |
1 Per section 1860D-14(a)(3)(B) of the Act, in the case of an individual whose spouse dies during the effective period for a determination or redetermination, such effective period shall be extended through the date that is one year after the date on which the determination or redetermination would otherwise cease to be effective.
2 The out-of-pocket threshold is $6,550 for 2021.
| Low-Income Subsidy Category | Deductible |
Copayment up to |
Copayment above |
|
Medicare Saving Program Participant (QMB-only, SLMB-only, or QI); or Supplemental Security Income (but not Medicaid) Recipient; or Applicant < 135% FPL with resources ≤ $9,470 ($14,960 if married)3 |
|||
|
Applicant < 150% FPL with resources between $9,470 – $14,790 ($14,960 – $29,520 if married)3 |
$92 | 15% | $3.70 generic, $9.20 brand |
2 The out-of-pocket threshold is $6,550 for 2021.
3 The resource limits displayed include $1,500 per person for burial expenses. For beneficiaries that did not notify SSA that they expect to use some of their resources for burial expenses, the applicable resource limit is $7,970 ($11,960 if married) for the full low-income subsidy and $13,290 for the partial subsidy ($26,520 if married).
How to Get Help
Medicare enrollees who think they might qualify should apply for coverage, even if they aren’t sure.
- To apply for the QMB, SLMB or QI programs, Medicare enrollees should contact their state’s Medicaid program. See this Medicaid directory to find contact information in each state.
- To receive Extra Help, Medicare enrollees should apply through the Social Security Administration.